HCMC – Vietnam’s data center market is increasingly attractive to foreign investors, driven by the country’s expanding digital economy, rising data consumption, and supportive government policies, said a new report by JLL.
While Vietnam’s data center sector has traditionally been dominated by local telecommunications companies, global players are now entering the market.
Notable developments include a 20MW facility by Gaw Capital and a 30MW project by Worldwide DC Solution. Alibaba has plans to establish a data center in Vietnam.
According to JLL, the development costs for data centers in Vietnam range between US$6 million and US$13 million per megawatt, which is consistent with construction costs across the Asia-Pacific region. The report also discusses operational costs and trends in retail colocation pricing.
The implementation of Vietnam’s power development plan VIII, which aims to diversify energy sources and enhance capacity, is expected to ensure a stable energy supply for the power-intensive data center industry.
The 2023 Telecommunications Law, which will start affecting data centers from January 2025, is anticipated to establish a more robust regulatory framework, likely to draw more foreign investment.
Celina Chua, JLL’s director of Data Centre Client Solutions for APAC, attributed the growing interest from abroad due to Vietnam’s strategic location, favorable economic policies, and tech-savvy population. “Our report highlights Vietnam’s readiness to capitalize on these opportunities.”
