Vietnam’s growing demand for data centers is attracting the attention of global investors.


As Vietnam focuses on the digital transformation of its rapidly growing economy and enforces data localization regulations for foreign businesses, the demand for data center investments in the country is increasing significantly.

According to Research and Markets, the world’s leading market research store, Vietnam’s data center market is projected to grow at a compound annual growth rate (CAGR) of 10.68%, reaching over $1 billion by 2028 from $561 million in 2022. The firm’s report, “Vietnam Data Center Market – Investment Analysis & Growth Opportunities 2023-2028,” indicates that current operators are increasing their market presence in the country by investing in new data center facilities.

In August 2022, Amazon Web Services (AWS) unveiled its edge data centers in Hanoi and Ho Chi Minh City, coinciding with its participation in the largest-ever US business delegation to Vietnam organized by the US-ASEAN Business Council (USABC) from March 21-23. During the event, AWS and other tech companies expressed their desire to aid in the development of Vietnam’s digital economy by discussing and exploring investment opportunities.

The significant growth of the data center market in Vietnam is propelled by various government initiatives and programs, such as the Digital Transformation Program 2025, which seeks to transition half of the businesses to digital platforms. According to the information provided, some of the main investors in Vietnam’s data center market include NTT Global Data Centers from Japan, as well as local companies such as Viettel, VNG Corp., HTC Telecom International (ECODC), FTP Telecom, CMC Telecom, VNPT, and VNTT.

NTT Global Data Centers has partnered with QD.Tek to build its second data center in Vietnam. The data center, named NTT Global Data Centers HCMC1, is set to open in 2024 and will be located in HCMC’s Saigon Hi-Tech Park. The five-story building will provide 6 MW of IT capacity across 3,100 square meters of server rooms, which is equivalent to 1,200 racks. The total investment for the project has not been disclosed.

On March 2021, Japan’s NTT Group announced that it will invest $90 million through its subsidiary NTT Global Data Centers to build a new data center in Bangkok, Thailand. The facility is expected to open in 2024.

According to Takeshi Kimura, Managing Director of NTT Global Data Centers in Asia, the economic activity in South Asia is rapidly changing based on the digital infrastructure available. He stated that high-quality digital infrastructure is essential to support the increasing digital needs of enterprises. He also mentioned that NTT Global Data Centers plans to further expand in this area.

Southeast Asia’s online economy is forecast to be worth $330 billion in 2025, almost tripling in five years, according to a Google-led study. The region’s internet economy is forecast to reach $1 trillion by 2030, with Vietnam second only to Indonesia, according to the report.

IDC, a US market research firm, reported that cloud infrastructure revenue in Southeast Asia increased to $2.18 billion in 2022, representing a 25% growth from the previous year. Although Singapore contributed approximately half of the total revenue, Vietnam, Indonesia, the Philippines, and Thailand each experienced annual growth of over 30%, surpassing the overall growth of the Asia and global markets, which were up by 25% and 29% respectively.

Vietnam has set a goal to reach carbon neutrality by 2050, while Amazon and Google have set ambitious targets to reduce their carbon footprint. Amazon aims to reach net-zero carbon emissions by 2040, a decade ahead of the Paris Agreement’s goal of 2050. Google has set a goal to power all its cloud data centers with carbon-free energy, 24 hours a day, by 2030.

It’s interesting to hear that Keppel Corporation is planning to expand its business in Vietnam and exploring new areas beyond real estate, such as the data center sector and clean energy transition. This move aligns with Vietnam’s aim to become a digital and green economy, and it’s also in line with the trend of investors and companies diversifying away from China. It will be exciting to see how Keppel Corporation’s plans unfold in Vietnam in the coming years.

In Cushman & Wakefield’s latest annual report on data center developments, Vietnam’s Ho Chi Minh City has been ranked among the top 10 markets in the land price category. The report evaluated major data center markets across the world based on various factors such as market size, fiber connectivity, power cost, and environmental risks, to identify the top markets overall and in each category. The report was published by the global property services firm in February.

According to Vivek Dahiya, who leads Cushman & Wakefield’s data center advisory team in Asia Pacific, the interest and investment in the APAC region are expected to continue at a fast pace as the sector evolves. He mentioned that Bangkok, Ho Chi Minh City, Hyderabad, Johor, and Manila are experiencing significant investment and interest, and he believes that this trend will continue in both primary and secondary markets in the region.

Vietnam is currently a nascent data center market but has several essential elements that indicate its enormous potential for future growth.

Media Contact:
Universal Smart Data Center Technology
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