Indian Billionaire to Build Two Data Centers in UAE
An Indian technology billionaire is building two new data centers in the United Arab Emirates. The investment signals the Gulf region's growing status as a significant hub for digital infrastructure and artificial intelligence. The move is part of a broader trend of expanding data capacity in the area.
The investment is from Zoho Corporation, led by co-founder and CEO Sridhar Vembu, who announced a significant expansion in the UAE. The new data centers are located in Dubai and Abu Dhabi and are part of a larger AED 100 million (approximately $27 million) investment in the country. This move is designed to support the growing demand for cloud services and ensure data sovereignty for businesses in the region. These facilities are already operational as of January 2026 and host over 100 of Zoho's business applications and services from its enterprise IT management division, ManageEngine. The establishment of local data centers allows Zoho to offer enhanced performance and lower latency for its UAE customers, while also complying with local data residency and cybersecurity regulations. The new data centers have received the CSP Security Standard Certificate from the Dubai Electronic Security Center (DESC), qualifying them to provide services to government and semi-government entities. The facilities are co-located with Equinix, a global data center provider, and are LEED certified, indicating they meet specific standards for green building and sustainability, including the use of renewable energy. This expansion is a direct response to Zoho's rapid growth in the Middle East and North Africa, which has become the company's second-fastest-growing market. In 2025 alone, Zoho saw a 38.7% growth in the UAE, expanded its local partner network by 29%, and increased its employee count by 35%. The investment aligns with the UAE's broader digital transformation goals, including Dubai's Vision 2030, by providing critical infrastructure for local businesses to adopt cloud technologies.
