Vietnam’s data center market is gaining momentum with investment projections rising to US$ 1.75 billion by 2030 from US$ 654 million in 2024, a CAGR of 17.93%, according to a recent report by Vietnam Data Center Market – Investment Analysis & Growth Opportunities 2025-2030 . The growth is driven by digital transformation, government policies, and increasing investments from both domestic and international players.
Other favourable factors boosting Vietnam’s attractiveness as a key data centre hub in Southeast Asia include the relative affordability of its land and construction costs. According to Cushman & Wakefield’s Asia Pacific Data Centre Construction Cost Guide 2025, Vietnam has some of the lowest construction costs in the region. Its construction costs range from US$ 5.5-8.5 million per megawatt, with an average of US $6.935 million per MW, with land costs representing only 5% of total construction costs. Suburban land with available infrastructure in Ho Chi Minh City and Hanoi averages US$ 209 per square meter.
The report also highlighted substantial investment opportunities in IT infrastructure, power, cooling, and general construction services. Improving infrastructure, increasing reliance on cloud services, thriving colocation market, growing enterprise digitalization initiatives and rapid adoption of AI, all point towards Vietnam’s increasing attractiveness as a data center hub in Southeast Asia.
In addition, the data center industry is increasingly focused on energy-efficient infrastructure such as liquid cooling and renewable energy. An example is Viettel’s green AI-ready data center, launched in April 2024 with a power capacity of 30MW. This aligns with the Vietnamese government’s pledge to achieve 39% renewable energy in the country’s energy mix by 2030.
Vietnam is also planning to establish 10 new submarine cables by 2030, futher bolstering its connectivity. In another significant move, the Vietnamese government has in July 2024 allowed foreign investors full ownership of data centers.
The recent announcement of the setting up of SAM DigitalHub, a 50-ha (124-acre), 150-MW data center campus initiative with a targeted investment of up to US$1.5 billion is yet further proof that demand for data centres is surging. This followed the entrance in 2024 of new players such as Epsilon Telecommunications (KT Corporation), Gaw Capital, and Infracrowd Capital.
Despite challenges such as infrastructure limitations, cybersecurity risks, and talent shortages, the new entrants are coming well-prepared to face them. Operators are reportedly racing to expand their capacities to meet surging demand for cloud computing, fintech services, and AI-driven applications in key cities like Hanoi and Ho Chi Minh City. Currently, data centres number about 26 with 11 in the pipeline.
With its cost advantages, strategic location, improving infrastructure, government support, population of 100 million, and growing digital economy, Vietnam is well-positioned to attract further data center investments making it a significant player in the regional data center landscape.