HCMC – The HCMC People’s Committee has proposed a special policy to support the development of a US$2 billion hyperscale data center backed by both local and international investors.
The proposal was part of a report submitted to the prime minister on July 8, concerning the reception and implementation of the hyperscale data center project in the city.
The project, aimed at supporting artificial intelligence development, has been proposed by a group of investors including G42 Technology (backed by the UAE’s sovereign wealth fund and Microsoft), FPT, VinaCapital, and Viet Thai Investment Group.
The HCMC People’s Committee said the project is designed as an “AI factory,” offering comprehensive artificial intelligence solutions and cutting-edge infrastructure for cloud service users in Asia and around the world.
It is seen as a strategic initiative with the potential to boost the city’s socio-economic development, contribute to GDP growth, attract foreign investment, create thousands of high-quality jobs, and strengthen the local IT talent pool.
However, the project’s investors have encountered legal and regulatory challenges. In response, city officials have asked the prime minister to step in and help resolve these issues.
The city noted that inconsistencies between domestic and international legal frameworks, particularly regulations related to data monitoring and traceability, could pose barriers and prompt investors to shift toward countries that allow cross-border data storage.
To address this, the local government has proposed the application of special mechanisms for projects with international business models, similar to the approach currently adopted by Singapore.
