Other BriefingsFreshworks Inc. Expands Presence in MEA with New UAE Data Center Powered by AWS
Freshworks’ partnership with Amazon Web Services (AWS) is integral to its strategy in Middle East & Africa (MEA), and is representative of how companies in the UAE are investing in digital infrastructure to provide advanced customer and employee service solutions while ensuring regional data compliance.
Freshworks Inc., a global leader in customer engagement software, has unveiled its latest initiative aimed at bolstering its footprint in the Middle East and Africa (MEA) region. The company’s new data center, located in the UAE and powered by Amazon Web Services (AWS), marks a significant step towards enhancing local support for businesses seeking advanced customer and employee service solutions.
Commitment to regional innovation
The launch of Freshworks’ UAE data center underscores its commitment to fostering innovation across MEA. This strategic move not only highlights Freshworks’ dedication to supporting digital transformation in the region but also addresses the critical need for data residency compliance among businesses operating in the UAE.
Abe Smith, Chief of Global Field Operations at Freshworks, emphasized the importance of this investment, stating, “We are thrilled to further strengthen our presence in MEA with the new data center in UAE. This investment demonstrates our dedication to supporting the growth and digital transformation of businesses in the region.”
Partnership with AWS for enhanced service delivery
Freshworks’ partnership with AWS is integral to its strategy in MEA, leveraging AWS’s robust cloud infrastructure to deliver superior performance, scalability, and flexibility. This collaboration not only enhances service delivery capabilities but also underscores a joint commitment to driving business growth through customer-centric solutions enabled by AI.
Sandie Overtveld, Senior Vice President of Freshworks APAC and MEA, highlighted the data center’s role in improving solution performance, stating, “We believe the data center will bolster our solution performance enabling businesses to serve their customers and employees in the UAE even better.”
Impact on regional business landscape
The UAE data center serves as the hub for Freshworks’ operations across 72 countries in the MEA region, positioning the UAE as a central location for delivering Freshworks’ suite of products including Customer Service, IT, and Sales and Marketing solutions. This initiative is expected to enhance operational efficiencies and streamline processes for businesses in the region.
Market growth and future prospects
The UAE data center launch aligns with significant market trends in the region’s data center industry.
According to data from Mordor Intelligence, the UAE data center market is projected to grow significantly, driven by increasing digital transformation initiatives and investments in 5G networks. They predict that the UAE data center capacity will grow from 429.3 MW in 2024 to 841 MW by 2029 at a CAGR of 14.39 percent. Further, it is anticipated to generate colocation revenue reaching US$12,897.9 million by 2029, fueled by increasing mobile users, expanding 5G networks, and digitalization trends, with tier-3 facilities leading growth and major players including Equinix Inc., Etisalat, Gulf Data Hub, Khazna Data Center, and Web Werks dominating the market.
Digital investments in the India data center market
The UAE will reportedly promote investment in digital infrastructure and AI, including supporting the development of a supercomputer cluster in India.
In February of this year, the UAE Ministry of Investment and India’s Ministry of Electronics & Information Technology (MeitY) signed a Memorandum of Understanding (MoU) during Prime Minister Narendra Modi’s trip to the Gulf region, to enhance bilateral investment cooperation in the digital infrastructure sector. Data center projects in India featured prominently on the agenda.
India’s rapidly growing data center market recently surpassed the 1GW milestone, and industry watchers anticipate significant expansion with potential additions of up to 2GW capacity by 2026. India reportedly generates 20 percent of global data, but its share of data center capacity is only at 3 percent. India’s internet economy is projected to reach US$1 trillion by 2030.
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