The Vietnam data center market is expected to increase from $561 million in 2022 to $1,037 million by 2028, representing a compound annual growth rate (CAGR) of 10.68% over the six-year period.
According to Research and Markets, the data localization law in Vietnam has led to the data center investments increase on a YoY basis. The are also newcomers investing in the market including Data Center First, Edge Centres, Infracrowd Capital, and Worldwide DC Solutions. Meanwhile, established operators are expanding their footprint by investing in new facilities and expanding existing ones.
In terms of network connectivity, Vietnam is currently connected to five submarine cables linking it to countries in the Asia-Pacific region, Europe, and the US. Two upcoming submarine cables, Asia Direct Cable (ADC) and Southeast Asia-Japan Cable 2 (SJC2), are expected to become operational by 2023/2024. There is growing adoption of 5G network connectivity which is fueling demand for edge data center deployment in Vietnam, providing last-mile connectivity and lower latency services.
There is also a push by the Vietnamese government which launched the Digital Transformation Program 2025 with the aim of shifting around 50% of businesses to digital platforms by 2025.
Vietnam’s Ministry of Information and Communication has also announced plans in February 2022 to research and develop 6G technology, to cater to the growing needs of the rapidly expanding technology industry.
