Vietnam sees data center investment boom
Renowned companies like Amazon, Microsoft, Supermicro, ST Telemedia Global Data Centers, Google, and Alibaba are increasingly showing interest.
Vietnam's market is rapidly becoming a hotspot for both domestic and international businesses.
Renowned companies like Amazon, Microsoft, Supermicro, ST Telemedia Global Data Centers, Google, and Alibaba are increasingly showing interest and making significant investments, contributing to the vibrancy of the market.
A recent report by Cushman & Wakefield highlights Vietnam's competitive edge in data center investment. With an average construction cost of $6.9 million per megawatt (MW), Vietnam boasts some of the lowest costs in the Asia-Pacific region, second only to Taiwan..
This cost efficiency is even more pronounced when compared to mainland China ($7.1 million), Thailand ($7.6 million), Indonesia ($8.7 million), and Malaysia ($9 million).
Ms. Trang Bui, General Director of Cushman & Wakefield Vietnam, emphasizes that Vietnam's favorable geographical location, coupled with reasonable construction costs, positions the country as a promising data center hub in the region.
Moreover, Vietnam's market is becoming increasingly attractive to foreign investors due to ongoing administrative reforms and a more open investment environment. This has spurred the interest of leading technology giants such as Apple, Intel, Canon, Samsung, LG, LEGO, and Airbus.
Mr. Hoang Van Ngoc, CEO of Viettel Internet Data Center (IDC), projects that to meet the technological demands of Vietnam's 100 million-strong population—particularly in the realms of artificial intelligence and cloud computing—the capacity of domestic data centers will need to expand by 15 times their current size.
