Vietnam is rapidly becoming a top choice for companies looking to set up data centers. The country’s economy is booming, and more and more people are using the internet. This means there’s a huge and growing need to store and process data.
Until recently, Vietnam had strict rules about foreign companies owning data centers. But that’s changed. Now, foreign companies can fully own data and cloud businesses in Vietnam. This is a big deal, as it’s different from the usual 49% foreign ownership cap in many other industries.
This policy shift has caught the attention of tech giants. For example, Alibaba is building a data center in Vietnam to comply with the country’s data storage laws. Instead of using government-owned facilities, Alibaba is setting up its own to meet the legal requirements.
Amazon Web Services (AWS) is also making big moves in Vietnam. They’re focused on helping businesses use cloud technology and training local people to work in the tech industry. This will help Vietnam’s economy grow and lead to more advanced technology in the future.
Ho Chi Minh City is often seen as the economic center of Vietnam, and it’s a popular place for data centers. A good example is ST Telemedia Global Data Centres (STT GDC). They’ve partnered with a Vietnamese company, VNG Corporation, to build several data centers in the city.
But Hanoi is also growing as a data center hub. Viettel Group, a big Vietnamese tech company, just opened its largest data center, which covers over 21,000 square meters.
Why Hanoi?
While Ho Chi Minh City may be Vietnam’s commercial capital, several factors are converging to propel Hanoi’s data center market to new heights. Firstly, Vietnam’s burgeoning economy, fueled by manufacturing, IT, and services, is generating a tidal wave of data. As the nation’s capital, Hanoi is at the epicenter of this digital transformation.
Secondly, the Vietnamese government has recognized the pivotal role data centers play in driving economic growth and enhancing digital sovereignty. A series of supportive policies, including tax incentives, streamlined approval processes, and infrastructure investments, have created a fertile ground for data center development.
Moreover, Hanoi’s commitment to upgrading its telecommunications infrastructure, such as expanding fiber optic networks and boosting internet connectivity, is laying a solid foundation for the data center industry. This improved digital backbone is essential to meet the growing demands of businesses and consumers alike.
While Hanoi may not yet match the scale of Ho Chi Minh City’s data center market, it is rapidly gaining traction. With its strategic location, supportive government policies, and growing digital ecosystem, Hanoi presents a compelling opportunity for data center investors and operators.