The Vietnam Data Center Market is expected to maintain a steady Compound Annual Growth Rate (CAGR) of 18.3% from 2024 to 2028. This growth is attributed to increased government and corporate investments in IT infrastructure, the rapid shift of businesses to cloud environments, and a rising number of data centers in Vietnam.
Additionally, advancements such as increased 5G penetration and the adoption of emerging technologies like AI, IoT, machine learning, and big data contribute to the forward momentum of the data center industry. Despite these positive trends, the industry faces challenges, particularly in terms of high risks associated with hacking and cybersecurity concerns, which could impede market growth. Telecom companies, followed by colocation operators, currently dominate the Vietnam data center market.
Moreover, new entrants like Data Center First and Edge Centres are making strides in the Vietnamese data center industry, indicating ongoing expansion. The Vietnamese government’s commitment to bolstering the digital economy is evident, with the Chairman of the Vietnam Digital Communication Association (VDCA) projecting that the digital economy will constitute approximately 20% of the country’s overall GDP by 2025.
USDC Technology, a prominent player in the Vietnam Data Center market, has partnered with Huawei Vietnam to provide customers with an advanced modular data center solution. This comprehensive solution encompasses the integration of cabinets, power supply, distribution systems, cooling systems, cabling systems, management software, and more.
Forecasts indicate substantial development in the Vietnam data center market, leading to increased complexity due to scalability. The growing adoption of high-end cloud computing by businesses in developing regions further propels the expansion of Vietnam’s data center market throughout the forecast period. Additionally, heightened investment in data center applications is expected to contribute significantly to market growth.
Growing Adoption of Modular Data Center Designs and Deployments
The ongoing expansion of design and engineering for data center facilities by major operators and architectural and engineering firms is expected to bring about significant advancements in the construction and operation of data centers. Modular data center construction is designed to tackle challenges such as high Power Usage Effectiveness (PUE), elevated operational costs associated with traditional data centers, and notable environmental impact.
The deployment of modular data centers, employing a templated plug-and-play approach for module assembly, streamlines the requirement collection for each material type, minimizing or eliminating waste. Consequently, the Vietnam Data Center market is poised for rapid growth over the projected period.
The increasing adoption of cloud services is fueling the demand for data center infrastructure
The emergence of edge cloud represents a novel approach involving the establishment of cloud data centers in multiple locations closer to end-users, facilitated by the increased deployment of modular data centers. Major cloud service providers such as Google, Amazon Web Services (AWS), Microsoft Azure, and Alibaba Cloud are actively pursuing cloud edge computing capabilities.
The modular data center market is being propelled by the demands of big data and the Internet of Things (IoT), as modular systems offer flexibility to support technologies like IoT and big data, especially in high-performance computing (HPC) environments. Furthermore, there is an anticipated significant increase in demand for modular data centers throughout the projected period.
Despite the potential for growth, concerns related to data privacy and the growing demand for managed services present key barriers to early adoption, hindering industry expansion. Conversely, the expected increase in datacenter technology spending, coupled with the growing use of multi-cloud solutions and network upgrades to facilitate 5G technology, is anticipated to create lucrative opportunities for the development of the data center market in the forecast period.
Competitive Landscape
In-depth analysis of key players in the Vietnam Data Center Market includes:
1. FPT Corporation
2. Viettel-CHT Ltd. Co
3. Vietnam Posts and Telecommunications Group
4. KDDI Corporation
5. Hitachi Asia (Vietnam) Co. Ltd
6. Hewlett Packard Enterprise
7. SAP Vietnam Co. Ltd
8. Microsoft Vietnam Limited Liability Company
9. IBM Vietnam Company Ltd
10. Universal Smart Data Center Technology (USDC Technology)
Media Contact
Universal Smart Data Center Technology
Phone: (+84) 28 73080708
Email: info@usdc.vn
