In the heart of Southeast Asia, Vietnam is experiencing a digital revolution as it emerges as a hotspot for data center and cloud investments. The exponential growth in global data creation, coupled with the strategic allure of the country, has prompted both domestic and foreign enterprises to invest heavily in building a robust digital infrastructure.
As the world prepares to handle an anticipated 180 zettabytes of data by 2025, Vietnam has become a key player in the global data race. McKinsey experts identified the country as a strategic location for data centers, attracting major tech giants eager to secure their positions in this competitive landscape.
The recently implemented Government Decree 53, mandating data localization for foreign enterprises, has spurred domestic technology companies to intensify their investments in data centers. However, despite their efforts, domestic companies currently hold only 21% of the market share, with the remaining 79% dominated by foreign tech giants, including AWS, Google, and Microsoft.
A wave of international companies is making significant contributions to Vietnam’s data center scene. Australian firm Edge Centres, in collaboration with Vietnam National University, is spearheading its expansion into Asia with the construction of its first data center in Ho Chi Minh City, with plans for another in District 1.
Meanwhile, Hong Kong-based GAW Capital Partners is investing in a massive data center project in Saigon Hi-Tech Park, slated for completion by 2024. Notably, the collaboration between NTT Global Data Centers of Japan and Vietnam’s Quang Dung Technology is set to launch a new data center next year in the same tech park.
These ventures highlight the strategic significance of Vietnamese cities such as Hanoi, Ho Chi Minh City, South Korea’s Busan, and Taipei, which have emerged as focal points for data center operators.
Leading Vietnamese technology companies like VNPT, Viettel, CMC, VNG, and FPT are not to be outdone. They are actively participating in the digital transformation by investing in high-quality, large-scale data centers that adhere to international standards and provide world-class services.
FPT Telecom’s construction of a data center in Saigon Hi-Tech Park and CMC Telecom’s upcoming launch in Tan Thuan Export Processing Zone are significant contributions to Vietnam’s digital infrastructure. Additionally, Viettel IDC is expanding its data center in Binh Duong, while Hanoi Telecom is extending its facility in Hanoi’s Hoa Lac Hi-Tech Park.
VNPT, one of the major players, recently unveiled its largest and most advanced data center, VNPT IDC Hoa Lac, showcasing Vietnam’s commitment to becoming the digital hub of Southeast Asia.
Vietnam’s Ministry of Information and Communications recognizes the importance of creating a conducive environment for data centers. Tran Minh Tuan, head of the Department of Digital Economy and Digital Society, revealed that the ministry is actively working on revising telecommunications laws to establish a legal framework for data centers. Moreover, standards and technical guidelines for data and cloud infrastructure are being issued to ensure a seamless and secure digital transition.
Tuan emphasized that while expanding data centers is crucial, equal focus must be placed on ensuring their efficient operation. This approach aligns with Vietnam’s broader vision of advancing the digital government, digital society, and digital economy, ultimately realizing its goal of becoming a fully-fledged digital nation.
As the data center market in Vietnam continues its upward trajectory, the nation stands at the forefront of a digital transformation odyssey, ready to redefine its role in the global tech landscape.
(Source: Thanh Thanh | Hanoi Times)
