Vietnam Data Center Market - Investment Analysis & Growth Opportunities 2024-2029

INDUSTRY OVERVIEW

The Vietnam data center market size will witness investments of USD 1.43 billion by 2029, growing at a CAGR of 13.12% during the forecast period. The country is emerging as a new destination for establishing data centers, attributed to its robust network connectivity and increasing internet penetration. The growth of the Vietnam data center market is propelled by the increasing demand for cloud computing and the adoption of advanced technologies such as the Internet of Things (IoT), big data, and artificial intelligence (AI). Additionally, the rollout of 5G network services and the government’s support for digitalization further contribute to the momentum in the country’s data center sector.

The country has robust connectivity with other global markets via submarine cables. Vietnam has around five existing submarine cables and three upcoming submarine cables. The growing connectivity will boost the data traffic and will lead to demand for data centers. Furthermore, in the Vietnam data center market, Hanoi and Ho Chi Minh City are the top locations for establishing data centers with the highest capacity in the market.

The Vietnam data center market witnessed business organizations and government institutions' growing adoption of cloud services. For instance, Telecom Vietnam, a provider of connectivity services, entertainment, and technology solutions, has integrated Google Cloud into its hybrid multi-cloud strategy as part of its overarching cloud-first strategy. Furthermore, Vietnam has abundant renewable solar, wind, biomass, and hydropower energy. Vietnam data center market operators have started adopting renewable energy sources to power their data centers. For instance, in September 2022, Edge Centres opened its edge data center in Ho Chi Minh City, Vietnam, which operates on solar energy.

KEY HIGHLIGHTS

• Vietnam aims to attain the status of a high-income economy by 2045, with a particular focus on advancing its digital economy. The integration of digital transformation has not only led to reduced time and costs for businesses but has also heightened transparency across various sectors. The National Plan underscores the significance of digitally transforming eight sectors: finance and banking, healthcare, education, agriculture, transport, logistics, energy, natural resources, environment, and manufacturing.
• Big data and IoT utilization are rising across diverse industries in the region. The government has recently introduced the National Strategy on Artificial Intelligence, outlining plans for transforming Vietnam into a focal point for innovation by 2030. As a case in point, VietinBank is proactively enhancing its data infrastructure by integrating data warehousing, Business Intelligence (BI), and Master Data Management (MDM) to strengthen its capabilities.
• In the initial phase of 5G development, Vietnam plans to roll out 5G services in industrial parks, schools, research institutes, and government agencies. The government's ambitious goal is to ensure that 100% of the population has their devices connected to the 5G network by 2030. With 50 million internet users, Vietnam ranks among the top 20 countries globally. While mobile connectivity has been instrumental in the country's progress, the advent of 5G is anticipated to lay the crucial groundwork for the next stage of digital transformation in Vietnam.
• Vietnam is quickly growing as a cloud computing and data center services market in the ASEAN region. There are over ten providers, including local and international companies. Areas like Binh Duong Province and Da Nang are seeing big investments in data centers. In Ho Chi Minh City, upcoming investments will cover more than 75% of the area in the near future.

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 Vietnam by colocation, hyperscale, and enterprise operators.
• Investments in the area (square feet) and power capacity (MW) across cities in the country.
• A detailed study of the existing Vietnam data center market landscape, an in-depth industry analysis, and insightful predictions about market size during the forecast period.
• Snapshot of existing and upcoming third-party data center facilities in Vietnam
  • Facilities Covered (Existing): 26
  • Facilities Identified (Upcoming): 06
  • Coverage: 4+ Cities
  • Existing vs. Upcoming (Area)
  • Existing vs. Upcoming (IT Load Capacity)
• Data Center Colocation Market in Vietnam
  • Colocation Market Revenue & Forecast (2023-2029)
  • Retail Colocation Pricing
• The Vietnam data center 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

• The Vietnam data center market has the presence of several global construction contractors such as Aurecon, AWP Architects, Sato Kogyo, and others. Global contractors' presence in the market boosts the market through their expertise and resources.
• Regarding IT infrastructure vendors, global firms such as Cisco Systems, Dell Technologies, Fujitsu, and Huawei Technologies dominate the Vietnam data center market. The presence of such companies is expected to grow in coming years owing to the increasing investment in the market and will lead to the high availability of IT infrastructure.
• The country's support infrastructure market is highly competitive due to global vendors such as Cummins, Caterpillar, ABB, Eaton, Legrand, etc. The increasing competitiveness is expected to decrease the price of infrastructure in the market and thus lead to a decrease in the OPEX of data center operators.
• Some key investors in the Vietnam data center market are CMC Telecom, Viettel IDC, FPT Telecom, VNPT, and others.
• Datacenter investors are also entering the market through partnerships and joint ventures. For instance, Infracrowd Capital is set to venture into the Vietnam data center market by signing a memorandum of understanding (MoU) with Nang IT Park Development Joint Stock Company. The collaboration aims to invest in establishing a facility, anticipated to commence operations by 2024.

EXISTING VS. UPCOMING DATA CENTERS

• Existing Facilities in the Region (Area and Power Capacity)
  • Hanoi
  • Ho Chi Minh City
  • Other Cities
• List of Upcoming Facilities in the region (Area and Power Capacity)
  • Ho Chi Minh City
  • Other Cities

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
  • Rack Cabinets
  • Other Mechanical Infrastructure
• Cooling Systems
  • CRAC & CRAH Units
  • Chiller Units
  • Cooling Towers, Condensers & Dry Coolers
  • Other Cooling Units
• General Construction
  • Core & Shell Development
  • Installation & Commissioning Services
  • Engineering & Building Design
  • Fire Detection & Suppression Systems
  • Physical Security
  • Data Center Infrastructure Management (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, 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 (USDC Technology)
• Support Infrastructure Providers: ABB, Caterpillar, Cummins, Cyber Power Systems, Delta Electronics, Eaton, Johnson Controls, Fuji Electric, HITEC Power Protection, KOHLER-SDMO, Legrand, Mitsubishi Electric, Piller Power Systems, Narada, Rittal, Schneider Electric, STULZ, Siemens, TECO Electric & Machinery, Trane, and Vertiv.
• Data Center Investors: CMC Telecommunication Infrastructure Corporation (CMC Telecom), FPT Telecom, HTC Telecom International, NTT Global Data Centers, VNTT, Telehouse, Viettel IDC, VNPT, and VNG Cloud.
• New Entrants: Gaw Capital, Edge Centres, Infracrowd Capital, and Worldwide DC Solutions.