Vietnam is quickly becoming an attractive location for companies like Google, Amazon, and Microsoft to develop their own data centers due to its strategic location and dynamic policies, according to a recent report by JLL – a global real estate and investment management services firm.
The data center market in Vietnam is currently dominated by domestic telecommunications companies such as Viettel IDC, FPT Telecom, VNPT, and CMC Telecom. These suppliers have been experiencing significant demand for cloud storage and data analysis services in recent times.
International businesses are also starting to enter the Vietnamese data center market, with projects like Gaw Capital’s 20 MW center in Ho Chi Minh City Hi-Tech Park and NTT and QD Tek’s cooperation to open a $70 million data center. Alibaba has also announced plans to establish a data center in Vietnam.
Experts believe that Vietnam’s strategic geographical location, dynamic economic policies, and young population make it an attractive destination for data center investors. The country’s upcoming Telecommunications Law 2023 is expected to further facilitate the development of this market and attract more foreign investment.
While Vietnam offers competitive construction costs for data centers, rapid growth in the industry also comes with challenges such as ensuring data privacy, network security, and sustainable resource consumption. These issues need to be addressed to continue attracting investors in the field.
Overall, Vietnam’s data center industry is considered one of the fastest-growing markets in the Asia-Pacific region, with the potential to attract major players like Google, Amazon, Microsoft, and Tencent in the near future.
