As the demand for data storage in Vietnam increases, foreign and domestic companies are eyeing the development of data centers in the country.
According to Arizton, the Vietnam data center market was valued at $511 million in 2021 and is expected to reach $751 million by 2027, growing at a CAGR of over 6% from 2022 to 2027. The Vietnam data center market is highly dominated by telecom operators, followed by colocation operators.
Moreover, according to ResearchAndMarkets, the world’s leading market research firm, in 2021, Vietnam was among the top 10 emerging markets for international data centers. With a significant number of businesses and organizations and a service delivery capability that meets international standards, the Vietnamese data center market has experienced tremendous growth.
Domestic enterprises anticipate that a data center system produced in Vietnam will considerably boost the country’s digital economy.
In Ho Chi Minh City, the VNG Company opened the VNG Data Centre, a new data center built to international standards, which will grow to 1,600 racks from its initial 410 server racks.
Viettel also introduced the Viettel Cloud ecosystem earlier in October, making it the largest data center infrastructure in Vietnam with 13 facilities, over 9,000 racks, and over 60,000 square meters of floor space.
In order to increase Viettel Cloud’s scale to 17,000 racks by 2025, the company announced that it would invest an additional 10 trillion Vietnamese dong (US$424.4 million or RM1.87 billion) in the company.
Moreover, in Ho Chi Minh City in August, CMC Corporation opened an international grade data center with 1,200 racks on 13,000 square meters of space and a 1.5 trillion Vietnamese dong investment (RM280mil).
Foreign Enterprises that also build data centers in Vietnam
Quang Dung Technology Distribution Joint Stock Company, a subsidiary of Greenfeed Vietnam Corp., and NTT Global Data Centres Company, a division of Japan’s NTT Group, began building a Tier-III data center in Ho Chi Minh City in March of last year. It is scheduled to open in 2024.
Huy Nguyen, co-founder and chief executive officer of KardiaChain and former senior technical director of Google, told Tuoi Tre newspaper that because of the significant revenue that would be made, it was no coincidence that many corporations invested in data centers.
In line with that, the Vietnam Government has continuously tried to improve the country’s digital economy. According to the Vietnam Digital Communication Association (VDCA) Chairman, around 20% of the digital economy will account for the total GDP of Vietnam by 2025.