The Vietnam data center market was assessed at USD 685 million in 2023 and is poised to escalate to USD 1.43 billion by 2029, demonstrating a robust compound annual growth rate (CAGR) of 13.12% throughout the forecast duration.
In a recent annual report by Arizton, unveiled just days ago, it has been revealed that the Vietnam data center market is poised for significant investments, projected to reach USD 1.43 billion by 2029, with a steady CAGR of 13.12% during the forecast period. This growth is fueled by Vietnam’s emergence as a promising hub for data center establishments, driven by its robust network connectivity and expanding internet access. The surge in demand for cloud computing and the adoption of cutting-edge technologies like IoT, big data, and AI are key drivers propelling this expansion. Additionally, the imminent rollout of 5G services and governmental initiatives promoting digitalization further bolster the momentum in the country’s data center industry.
Vietnam boasts robust international connectivity through submarine cables, with five already in operation and three more in development. This enhanced connectivity is expected to escalate data traffic, driving the demand for data center facilities. Hanoi and Ho Chi Minh City are identified as prime locations for data center setups, boasting the highest capacity in the market.
The adoption of cloud services is on the rise among both businesses and government entities in Vietnam. Telecom Vietnam, a prominent provider of connectivity services and technology solutions, has integrated Google Cloud into its hybrid multi-cloud strategy, aligning with its cloud-first approach. Moreover, Vietnam’s abundant renewable energy sources, including solar, wind, biomass, and hydropower, are being leveraged by data center operators. Notably, Edge Centres launched an edge data center in Ho Chi Minh City powered by solar energy, reflecting a shift towards sustainable practices in the industry.
KEY HIGHLIGHTS
Vietnam is steadfast in its pursuit to ascend to the ranks of a high-income economy by 2045, with a dedicated emphasis on propelling its digital economy forward. The seamless integration of digital transformation has not only streamlined processes, reducing both time and costs for businesses, but has also ushered in a new era of transparency across various sectors. The National Plan underscores the paramount importance of digitally revolutionizing key sectors including finance, healthcare, education, agriculture, transport, logistics, energy, natural resources, environment, and manufacturing.
The utilization of big data and IoT is skyrocketing across diverse industries within the region. The government’s recent introduction of the National Strategy on Artificial Intelligence signals its ambitious vision to position Vietnam as an epicenter of innovation by 2030. VietinBank stands as a prime example, actively bolstering its data infrastructure through the integration of data warehousing, Business Intelligence (BI), and Master Data Management (MDM) to fortify its capabilities.
In the initial stages of 5G development, Vietnam has outlined plans to deploy 5G services in industrial parks, schools, research institutes, and government agencies. The government’s audacious objective is to ensure that 100% of the population has access to 5G connectivity by 2030. With over 50 million internet users, Vietnam ranks among the top 20 countries globally. While mobile connectivity has been a catalyst for the country’s advancement, the advent of 5G is poised to lay the critical groundwork for the next phase of digital transformation in Vietnam.
Vietnam is rapidly emerging as a pivotal player in the cloud computing and data center services market within the ASEAN region. With over ten providers, encompassing both local and international companies, regions such as Binh Duong Province and Da Nang are witnessing substantial investments in data center infrastructure. In Ho Chi Minh City, upcoming investments are poised to cover more than 75% of the area in the near future, solidifying its status as a burgeoning hub for digital innovation and infrastructure development.
VENDOR LANDSCAPE OVERVIEW
The Vietnam data center market boasts a diverse array of global construction contractors, including Aurecon, AWP Architects, Sato Kogyo, Universal Smart Data Center Technology (USDC Technology), and others. Their presence contributes significantly to market development, leveraging their expertise and resources to enhance infrastructure projects.
In terms of IT infrastructure vendors, global giants like Cisco Systems, Dell Technologies, Fujitsu, and Huawei Technologies dominate the scene. With increasing investments pouring into the market, the prominence of such companies is expected to grow further, ensuring high availability of cutting-edge IT infrastructure solutions.
The support infrastructure market in Vietnam is fiercely competitive, with major global players like Cummins, Caterpillar, ABB, Eaton, and Legrand vying for market share. This heightened competition is anticipated to drive down infrastructure costs, consequently reducing the operational expenditure (OPEX) for data center operators.
Key investors in the Vietnam data center market include CMC Telecom, Viettel IDC, FPT Telecom, VNPT, among others, indicating a robust investment landscape driving market growth.
Moreover, the market witnesses the entry of data center investors through strategic partnerships and joint ventures. For instance, Infracrowd Capital’s forthcoming venture into the Vietnam data center market, marked by a memorandum of understanding (MoU) with Danang IT Park Development Joint Stock Company, underscores this trend. The collaboration aims to establish a state-of-the-art facility slated to commence operations by 2024, showcasing the burgeoning opportunities for investment and growth in the sector.
VENDOR LANDSCAPE SUMMARY
- IT Infrastructure Providers: Cisco Systems, Dell Technologies, Fujitsu, Hewlett Packard Enterprise, Huawei Technologies, Hitachi Vantara, IBM, Internet Initiative Japan (IIJ), Juniper Networks, Lenovo, NetApp, NEC, and Oracle.
- Data Center Construction Contractors & Sub-Contractors: Aurecon, Archetype Group, AWP Architects, Apave, Delta Group, GreenViet, Sato Kogyo, and Universal Smart Data Center Technology (USDC Technology).
- Support Infrastructure Providers: ABB, Caterpillar, Cummins, Cyber Power Systems, Delta Electronics, Eaton, Johnson Controls, Fuji Electric, HITEC Power Protection, KOHLER-SDMO, Legrand, Mitsubishi Electric, Piller Power Systems, Narada, Rittal, Schneider Electric, STULZ, Siemens, TECO Electric & Machinery, Trane, and Vertiv.
- Data Center Investors: CMC Telecommunication Infrastructure Corporation (CMC Telecom), FPT Telecom, HTC Telecom International, NTT Global Data Centers, VNTT, Telehouse, Viettel IDC, VNPT, and VNG Cloud.
- New Entrants: Gaw Capital, Edge Centres, Infracrowd Capital, and Worldwide DC Solutions.
Media Contact
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Phone: (+84) 28 73080708
Email: info@usdc.vn
