Inside Zoho’s UAE Data Centers!

Playing the Long Game in Cloud Infrastructure, Data Centers, Privacy, Cybersecurity, and Growth in the UAE

The Integrator had an interview with Shailesh Davey, Co-founder & CEO, Zoho, during the official launch of their newly opened data centers in the UAE.

Zoho is on an executing path; as they say, it is a disciplined, long-term regional strategy by deploying and right-sizing data centers in Saudi and the UAE, aligning with global trends in data sovereignty and privacy.

The UAE is a priority growth market fueled by regulatory and business-led digitization, supported by local teams and partners. Customers will see faster performance from local hosting, while flagship products Zoho CRM Plus and Zoho Books lead growth, with rapid regulatory feature alignments.

Zoho currently operates more than 18 data centers globally, with the UAE being the latest addition. From a regional perspective, does the Middle East require more data centers, or are the facilities in the UAE and Saudi Arabia sufficient to support Zoho’s growth plans?

We currently operate two data centers in Saudi Arabia, which primarily serve the Saudi market. In the UAE, we have now established two data centers—one in Dubai and another in Abu Dhabi. These facilities have been carefully right-sized based on our expected growth in the region.

We have been present in this market since 2009, so we have a clear understanding of customer adoption patterns, data usage behavior, and growth trajectories. Based on this data, we have ensured sufficient capacity for the next two to four and a half years. Every six months, our teams review capacity utilization and growth rates. If we see demand growing faster than anticipated, we simply expand further.

This approach isn’t new for us—we’ve been doing this consistently since 2006–2007.

Zoho is widely known for its capital discipline and strong stance on privacy. With increasing global rhetoric around cybersecurity, data sovereignty, and regulations—especially in markets like the UAE—do you believe governments are emphasizing certifications due to a trust deficit with large tech companies, or is this part of a broader global shift?

There are a few important factors at play here. First, some of the world’s largest technology companies have built their businesses by monetizing user data. This is openly acknowledged as part of their business model. While it may be legal, it understandably creates discomfort—especially for governments concerned about the data of their citizens, and for individuals who often accept terms and conditions without fully realizing what they are agreeing to.

Second, we are now living in a rapidly evolving geopolitical environment. The shift toward a multipolar world has accelerated significantly over the last couple of years. In this context, it is only practical for governments to introduce regulations that ensure clarity around where data resides, how it is handled, and whether companies are compliant with local laws.

From Zoho’s perspective, this has always aligned with our philosophy. Wherever we set up data centers, we comply fully with local regulations and data sovereignty requirements. Certifications and compliance are simply proof points of that commitment.

Zoho has seen strong growth in the UAE. Which flagship products are driving this momentum, and how does the establishment of local data centers translate into tangible benefits for businesses in terms of innovation and performance?

Let me start with the impact of the data centers. The most immediate and visible benefit is speed. Earlier, customer data was being served from the US, which meant latency due to the physical distance. With local data centers in the UAE, response times are significantly faster. This directly improves user experience, in addition to meeting security and compliance requirements.

In terms of products, our fastest-growing solution in the UAE is Zoho CRM Plus. For any business, sales is a critical function, and CRM Plus is a comprehensive, customer-facing suite that supports sales, marketing, customer support, service, and even project management.

The second major growth driver is Zoho Books, which is widely used by finance and accounting teams. With increasing regulatory requirements around accounting, compliance, and e-invoicing in the UAE, Zoho Books helps businesses stay compliant while maintaining accurate and transparent financial records.

Given the pace at which regulations are evolving, especially in areas like e-invoicing, our local presence allows us to respond very quickly. We see significant long-term potential for both CRM Plus and Zoho Books in this market.

One of Zoho’s recent consumer-focused initiatives Aaratai application has gained strong traction in India and has generated a lot of discussion. Do you see similar B2C-led innovations helping Zoho reach a wider audience in the UAE as well? Could we see such solutions being developed or localized for this market?

This has been an interesting experiment for us. What we’ve essentially done is take the technology we built for the B2B world, adapt it, and make it accessible to B2C users. That’s how this particular app was born, and it received strong tailwinds in the Indian market.

Interestingly, due to the large Indian diaspora in the UAE, adoption naturally extended here as well. Our immediate focus is to ensure that the product is reliable, feature-rich, and delivers long-term value to users.

Once we are confident that the model works at scale, we will look at expanding into other markets where there is strong synergy. Markets with a significant Indian diaspora are a natural starting point, and Europe is high on that list.