The Vietnam data center market size will witness investments of USD 1037 million by 2028, growing at a CAGR of 10.68% during the forecast period. The country is witnessing growth in cloud adoption by various industry verticals, such as enterprises, government agencies, and education sectors. For instance, in November 2022, Ho Chi Minh City Securities Corporation (HSC) and Gimasys adopted the Google Cloud platform to increase the reliability and efficiency of their operations. Some factors, such as government strategies, digitalization initiatives, growing fiber connectivity, and 5G deployment, are driving the Vietnam data center market.

In Vietnam, telecom operators Viettel, Mobifone, and VNPT have received a license from the Ministry of Information and Communication (MIC) to do 5G trials in 16 cities and is planning to provide the 5G network services across the country by 2030. The Vietnam data center market is a growing market in the Southeast Asian region and has the presence of prominent global-based cloud service providers, which include Amazon Web Services (AWS), Google Cloud, and Microsoft, and local cloud-based service providers such as Viettel IDC, VNPT, CMC Telecom, and FPT Telecom. In 2022, Amazon Web Services (AWS) launched edge data centers in Hanoi and Ho Chi Minh City in Vietnam.

Vietnam's major renewable energy producers are solar, wind, and hydro. The country focuses on producing renewable energy that aims to generate more than 40% of renewable energy in the total power generated by 2050. According to Accenture, in Vietnam, around 60% of the organizations operating in financial and banking sectors made various trials for using Artificial Intelligence and its applications.

Industrial parks and Free Trade Zones (FTZs) attract operators to invest in Vietnam by enabling various tax incentives for data center construction. In April 2022, Gaw Capital Partners acquired land of around 65,000 square feet in Saigon Hi-Tech Park, Vietnam, to develop a data center facility.

KEY HIGHLIGHTS

• With the implementation of the data localization law in Vietnam, data center investments are increasing on a YoY basis. The country is witnessing investments from new entrants such as Data Center First, Edge Centres, Infracrowd Capital, and Worldwide DC Solutions. Existing operators are expanding their presence in the country by investing in the new facility and expanding the existing facility.
• Regarding network connectivity, the country has five existing submarine cables connecting to APAC & EMEA countries and the US. Asia Direct Cable (ADC) and Southeast Asia-Japan Cable 2 (SJC2) are the two upcoming submarine cables expected to be operational by 2023/2024.
• The Government has launched the digitalization initiative known as Digital Transformation Program 2025 aims to transfer around 50% of the business to digital platforms by 2025.
• In the country, the 5G network connectivity increase drives the demand for edge data center deployment and offers last-mile connectivity and lower latency services. In August 2022, Amazon Web Services (AWS) announced the launch of edge data centers in Hanoi and Ho Chi Minh City in Vietnam.
• In February 2022, the Ministry of Information and Communication of Vietnam announced its research plans for developing 6G technology to meet the demand from the fastest-growing technology sectors.
• Due to supply chain disruptions, the country witnessed a chip supply shortage. Several chip manufacturers are expanding their footprints with new manufacturing units to overcome the challenges. For instance, in August 2022, Samsung announced that they are investing around USD 3 billion to develop a chip manufacturing plant in Vietnam, and they plan to start trial production in July 2023.

WHY SHOULD YOU BUY THIS RESEARCH?

• Market size available in the investment, area, power capacity, and Vietnam colocation market revenue.
• An assessment of the data center investment in v by colocation, hyperscale, and enterprise operators.
• Investments in the area (square feet) and power capacity (MW) across states in the country.
• A detailed study of the existing Vietnam data center industry landscape, an in-depth industry analysis, and insightful predictions about industry size during the forecast period.
• Snapshot of existing and upcoming third-party data center facilities in Vietnam
  • Facilities Covered (Existing): 24
  • Facilities Identified (Upcoming): 07
  • Coverage: 4 Cities
  • Existing vs. Upcoming (Area)
  • Existing vs. Upcoming (IT Load Capacity)
• Data center colocation market in Vietnam
  • Market Revenue & Forecast (2022-2028)
  • Retail Colocation Pricing
• Vietnam market investments are classified into IT, power, cooling, and general construction services with sizing and forecast.
• A comprehensive analysis of the latest trends, growth rate, potential opportunities, growth restraints, and prospects for the industry.
• Business overview and product offerings of prominent IT infrastructure providers, construction contractors, support infrastructure providers, and investors operating in the industry.
• A transparent research methodology and the analysis of the demand and supply aspects of the industry.

VENDOR LANDSCAPE

• Ho Chi Minh City and Hanoi are the major locations in the Vietnam data center market, with 24 existing third-party data centers. Hanoi is the major location in Vietnam, with around 11 existing facilities.
• Some key investors in the Vietnam data center market are Viettel IDC, NTT Global Data Centers, FTP Telecom, CMC Telecom, HTC Telecom International (ECODC), VNPT, and VNTT.
• Most colocation facilities are being developed according to Tier III standards. In Vietnam, around eight facilities have received Uptime Institute’s Tier III certification, either in the design phase or for construction.
• In 2022, Vietnam witnessed investments from NTT Global Data Centers, FTP Telecom, Data Center First, Worldwide DC Solutions, Viettel IDC, VNG Cloud, and Infracrowd Capital. For instance, in December 2022, VNG Cloud opened its new data center facility in Ho Chi Minh City, Vietnam.
• Operators in the country have started investing in procuring renewable energy sources. For instance, Edge Centres launched its first edge data center in Ho Chi Minh City, Vietnam, powered by solar energy.
• The data center Infrastructure provider Delta Electronics Vietnam partnered with HTC-ITC to deploy a green data center in Vietnam with a PUE of 1.4, which is 20% lower than other data centers operating in the country.

EXISTING VS. UPCOMING DATA CENTERS

• Existing Facilities in the region (Area and Power Capacity)
  • Hanoi
  • Ho Chi Minh City
  • Other Cities (Da Nang, and Binh Duong Province)
• List of Upcoming Facilities in the region (Area and Power Capacity)

REPORT COVERAGE:

This report analyses the Vietnam data center market share. It elaboratively analyses the existing and upcoming facilities and investments in IT, electrical, mechanical infrastructure, general construction, and tier standards. It discusses market sizing and investment estimation for different segments. The segmentation includes:

• IT Infrastructure
  • Servers
  • Storage Systems
  • Network Infrastructure
• Electrical Infrastructure
  • UPS Systems
  • Generators
  • Transfer Switches & Switchgears
  • PDUs
  • Other Electrical Infrastructure
• Mechanical Infrastructure
  • Cooling Systems
  • Racks
  • Other Mechanical Infrastructure
• General Construction
  • Core & Shell Development
  • Installation & commissioning Services
  • Engineering & Building Design
  • Fire Detection & Suppression
  • Physical Security
  • DCIM
• Tier Standard
  • Tier I & Tier II
  • Tier III
  • Tier IV

VENDOR LANDSCAPE

• IT Infrastructure Providers: Cisco Systems, Dell Technologies, Fujitsu, Hewlett Packard Enterprise, Huawei Technologies, Hitachi Vantara, IBM, Internet Initiative Japan (IIJ), Juniper Networks, Lenovo, NetApp, NEC Corporation, and Oracle.
• Data Center Construction Contractors & Sub-Contractors: Aurecon, Archetype Group, AWP Architects, Apave, Delta Group, GreenViet, Sato Kogyo, and Universal Smart Data Center Technology.
• Support Infrastructure Providers: ABB, Caterpillar, Cummins, Cyber Power Systems, Delta Electronics, Eaton, Fuji Electric, HITEC Power Protection, KOHLER Power, Legrand, Mitsubishi Electric, Panduit, Rittal, Schneider Electric, Siemens, STULZ, Trane (Ingersoll Rand), and Vertiv.
• Data Center Investors: CMC Telecom, FPT Telecom, HTC Telecom International (ECODC), NTT Global Data Centers, Telehouse, VNTT, Viettel IDC, Vietnam Posts and Telecommunications Group (VNPT), and VNG Cloud.
• New Entrants: Data Center First, Edge Centres, Infracrowd Capital, and Worldwide DC Solutions.