Vietnam Data Center Market – Investment Analysis & Growth Opportunities 2026-2031
The Vietnam Data Center Market Size, Share, Trends, & Investments By IT Infrastructure, By Electrical Infrastructure, By Mechanical Infrastructure, By Cooling Systems, By General Construction, & By Tier Standard.
VIETNAM DATA CENTER MARKET SIZE AND SHARE
| MARKET SIZE (INVESTMENT) | USD 3.19 Billion (2031) |
| MARKET SIZE (AREA) | 308 Thousand Sq. feet (2031) |
| MARKET SIZE (POWER CAPACITY) | 77 MW (2031) |
| CAGR - INVESTMENT (2025-2031) | 20.47% |
| COLOCATION MARKET SIZE (REVENUE) | USD 760 Million (2031) |
| HISTORIC YEAR | 2022-2024 |
| BASE YEAR | 2025 |
| FORECAST YEAR | 2026-2031 |
| MAJOR PLAYERS | CiscoDell TechnologiesFujitsuHitachi VantaraNEC and OracleNetAppInternet Initiative Japan (IIJ) |
VIETNAM DATA CENTER MARKET ANALYSIS
The Vietnam data center market size was valued at USD 1.04 billion in 2025 and is expected to reach USD 3.19 billion by 2031, growing at a CAGR of 20.47% during the forecast period. The market is driven by the growing adoption of digital platforms, advancements in technologies such as AI, expansion of the digital economy, rising internet usage and data traffic, government initiatives, and the increasing number of mobile and social media users. These factors are expected to significantly increase data traffic and strengthen demand for data center infrastructure across the country.
The Vietnamese government is also promoting key sectors, including the development of clean energy solutions. It is establishing a Direct Power Purchase Agreement (Direct PPA) framework specifically for the data center industry while refining digital regulations and laws to support advancements in AI and other digital technologies. These initiatives are expected to improve the investment environment and support the development of sustainable data center infrastructure.
In July 2025, CMC Corporation, in collaboration with the Saigon Hi-Tech Park Management Board, received approval for a USD 250 million Phase I investment to develop a hyperscale Tier III data center in Ho Chi Minh City. The total investment is expected to reach up to USD 1 billion in subsequent phases, highlighting the growing interest in large-scale data center development in Vietnam.
Vietnam is also accelerating the adoption of cloud computing as part of its broader digital transformation strategy. The country aims to achieve full adoption of cloud computing across government agencies by 2030, with the objective of strengthening its position as a leading ASEAN market for data centers and cloud computing services. In June 2025, Vietnam's Prime Minister approved a national action program for cloud computing development, which focuses on prioritizing resources, mastering key technologies, promoting innovation, and developing and applying cloud computing to establish advanced, secure, and sustainable digital infrastructure.
The country's data center investment outlook is further supported by tax incentives and greater regulatory clarity. From October 1, 2025, qualifying projects can benefit from a 10% corporate tax rate for 15 years, including a four-year full tax exemption followed by a 50% reduction for the next nine years. Eligible projects can also receive land-rent exemptions of up to 11 years, while foreign experts may benefit from five-year income tax exemptions. These incentives are expected to improve the attractiveness of Vietnam as a destination for data center investments.
Vietnam has rapidly emerged as one of the fastest-growing data center markets in the region and is becoming an increasingly important hub for cloud and AI infrastructure. As of September 2025, the country's data center pipeline, including under-construction, announced, and planned facilities, exceeded 500 MW, positioning Vietnam among the major emerging data center markets in Asia.
VIETNAM DATA CENTER MARKET INVESTMENT BY AREA
The Vietnam data center market by area is expected to reach 308 thousand sq. ft. by 2031, supported by the country’s favorable investment environment, increasing digitalization, and expanding energy and connectivity infrastructure. The growing availability of power and fiber networks is enabling data center operators to establish and scale facilities across key markets. In addition, foreign ownership flexibility, access to pre-approved energy and fiber infrastructure, and various incentives through the EEC are strengthening Vietnam’s position as an attractive destination for data center investments in Southeast Asia.
Geographically, Hanoi and Ho Chi Minh City remain the most preferred locations for data center operators in Vietnam, owing to their strong connectivity, established business ecosystems, and concentration of digital infrastructure. Hanoi accounts for the highest number of data center facilities in the country, while Ho Chi Minh City continues to attract investments due to its large enterprise base and growing demand for cloud, digital, and data-intensive services. The continued development of infrastructure and favorable investment policies in these cities is expected to support the expansion of data center capacity over the forecast period.
VIETNAM DATA CENTER MARKET INVESTMENT BY POWER CAPACITY
The Vietnam data center market by power capacity is expected to reach 77 MW by 2031, supported by the country’s ongoing expansion of power infrastructure and increasing focus on renewable energy integration. Vietnam is entering a pivotal phase of power capacity development, positioning itself as one of the most dynamic data center markets in Southeast Asia. Its strong power generation base, combined with planned renewable energy integration and the development of Direct Power Purchase Agreement (Direct PPA) mechanisms, is expected to create a strong foundation for sustained hyperscale and AI data center growth.
The Vietnamese government is committed to promoting key sectors, including the development of clean energy solutions, which is expected to further support the data center industry’s power requirements. The government is establishing a Direct PPA framework specifically for the data center industry while also refining digital regulations and laws to support advancements in AI and digital technologies. These initiatives are expected to improve access to reliable and sustainable power and encourage further investment in data center infrastructure across Vietnam.
Key Report Takeaways
- IT Infrastructure - The server infrastructure segment dominated the Vietnam data center market, accounting for approximately 56% of the market share in 2025.
- Electrical Infrastructure - The UPS systems segment led the Vietnam data center market in 2025, supported by the growing need for reliable backup power and uninterrupted operations.
- Mechanical Infrastructure - In 2025, cooling systems represented the largest segment of the Vietnam data center mechanical infrastructure market, driven by the need for efficient and reliable thermal management.
- General Construction - In 2025, core and shell construction represented the largest segment of the Vietnam data center general construction market, accounting for 44% of the market.
- Tier Standard - Tier III facilities dominated the Vietnam data center market in 2025, reflecting the strong demand for highly reliable, resilient, and continuously available infrastructure.
Note: Market size and forecast figures are generated using Arizton's proprietary estimation framework, based on facility-level primary and secondary research, updated as of the current reporting cycle.
Vietnam Existing & Upcoming Data Center Portfolio
EXISTING FACILITY DATA POINTS
- Location — region, city, full address
- Operator / owner name & facility name
- Core & shell white-floor area
- Core & shell IT load capacity
- Rack Capacity
- Tier standard (I–IV) & redundancy design
- Year of operations
UPCOMING FACILITY DATA POINTS
- Investor name & location
- Planned area & power capacity (MW)
- Total investment (USD Million)
- Electrical / mechanical / construction investment split
- Announcement year & project status
- Expected year of opening
- Retail & wholesale colocation pricing
VIETNAM DATA CENTER MARKET TRENDS AND DRIVERS
TRENDS
| Trends | Impact (2025) | Geographic Presence | Impact (2031) |
|---|---|---|---|
| Rise in Automation and Digitalization | High | Ho Chi Minh City (HCMC) and Hanoi | High |
| Sustainable Data Centers on the Rise | Medium | Ho Chi Minh City (HCMC) and Hanoi | High |
| Smart City Initiatives Drive Market | Medium | Ho Chi Minh City (HCMC) and Hanoi | High |
Rise in Automation & Digitalization
The Vietnam 4.0 framework is supporting the development of Smart City and Industry 4.0 initiatives, encouraging the adoption of advanced digital technologies across multiple sectors. As part of these efforts, increased collaboration among government agencies, private enterprises, and technology providers is helping accelerate the deployment and adoption of IoT solutions.
The expanding use of IoT-enabled technologies is generating greater connectivity and data volumes, while increasing the need for reliable digital infrastructure. This trend is expected to contribute to rising demand for data centers and support the continued development of Vietnam’s data center market.=
Smart City Initiatives Drive Market
Vietnam, with its rapid urbanization and expanding population of around 101 million at the start of 2025, has emerged as a favorable market for the development of smart city initiatives. The country is increasingly adopting digital technologies and connected infrastructure to improve urban services, enhance operational efficiency, and support sustainable economic development. Five localities Hanoi, Ho Chi Minh City, Quang Ninh, Hai Phong, and Da Nang have been identified as potential “locomotives” for pioneering the smart city model during the 2025–2030 period. These cities are expected to play a leading role in demonstrating and implementing smart city solutions, including advanced connectivity, digital public services, intelligent transportation, and data-driven urban management.
According to expert estimates, each smart city model could require approximately USD 200 million in investment for full-scale deployment. Consequently, Vietnam may need to mobilize at least USD 1 billion during the initial phase to support the development and implementation of smart city initiatives across these five pilot locations. The increasing investment in smart city infrastructure is expected to accelerate the adoption of IoT, cloud computing, AI, and other digital technologies. As these solutions generate and process growing volumes of data, they are also expected to increase demand for reliable connectivity, data processing capabilities, cloud services, and data center infrastructure across Vietnam.
RESTRAINTS
| Restraint | Impact (2025) | Geographic Presence | Impact (2031) |
|---|---|---|---|
| Security Challenges Impact Data Center Growth | High | Ho Chi Minh City (HCMC) and Hanoi | Medium |
| Growing Need for Skilled Workforce | High | Ho Chi Minh City (HCMC) and Hanoi | Medium |
Security Challenges Impact Data Center Growth
Data centers face significant physical and cybersecurity challenges, as they house critical applications and sensitive data for businesses and form an essential part of modern data storage infrastructure. Any security breach can have serious consequences for both end users and companies, including data loss, service disruptions, and potential financial and reputational damage.
In Vietnam, the data center market is facing several security challenges that can affect market growth and operational efficiency, including cybersecurity threats, physical security risks, and insider threats. As data center infrastructure continues to expand, operators will need to strengthen security measures, access controls, monitoring systems, and cybersecurity capabilities to protect critical infrastructure and maintain reliable services.
Growing Need for Skilled Workforce
Vietnam is currently facing a shortage of skilled labor in the data center industry due to the rapid adoption of new technologies and the increasing complexity of digital infrastructure. This shortage can be attributed to limited professional training, low awareness of relevant educational opportunities, insufficient investment in workforce upskilling, and broader gaps in awareness regarding the growing demand for specialized technical talent. The wider shortage of high-skilled professionals across the region further highlights the growing need to strengthen technical education and workforce development programs.
According to a survey by the National Higher Education Science Research and Innovation Policy Council (NXPO) and IRIS Consulting, more than one million high-skilled positions are expected to be required across 10 targeted industries, including the digital industry, between 2025 and 2029. This increasing demand for specialized talent underscores the importance of developing skilled professionals capable of supporting the expansion of digital infrastructure and data center operations.
Rising Adoption of Cloud-based Services
Cloud services have gained significant popularity among businesses seeking to scale their operations rapidly, as they provide greater flexibility, enhanced security, and cost efficiency while reducing the need for substantial capital investment in physical infrastructure. In Vietnam, the growing adoption of cloud technology is emerging as a major catalyst for digital transformation, enabling businesses to modernize their IT infrastructure, accelerate innovation, and improve operational efficiency.
The increasing reliance on cloud-based platforms and services is also helping organizations manage growing data volumes, support digital applications, and respond more effectively to evolving customer and business requirements. As cloud adoption continues to expand, it is expected to contribute to the development of a more agile and technology-driven business ecosystem in Vietnam, thereby supporting demand for data center infrastructure.
Improvement in Connectivity via Submarine Cables
The ongoing expansion of submarine cable infrastructure is playing a transformative role in Vietnam’s data center market, supported by significant investments in both submarine and inland connectivity networks. These infrastructure developments and strategic partnerships are helping modernize Vietnam’s digital ecosystem by improving international bandwidth, strengthening network resilience, and reducing latency for data-intensive applications. Enhanced connectivity is also enabling faster and more reliable access to global digital networks, making Vietnam an increasingly attractive location for cloud service providers, hyperscale operators, and AI-driven infrastructure.
As submarine cable capacity continues to expand, Vietnam is strengthening its position as a strategic hub for global data flows and digital services in Southeast Asia. Improved international connectivity is expected to support the rising demand for cloud computing, AI, content delivery, and other data-intensive services, while also encouraging further investments in data center infrastructure across the country.
SEGMENT ANALYSIS
IT INFRASTRUCTURE
By IT infrastructure, the server segment dominated the Vietnam data center market, accounting for approximately 56% of the market share in 2025. The segment is experiencing rapid development, supported by Vietnam’s accelerating digital transformation, expanding internet penetration, and increasing demand for cloud-based services.
The growing implementation of digital transformation initiatives, enterprise cloud adoption, and 5G network deployment is expected to further drive the adoption of cloud servers across the country. As businesses increasingly rely on digital applications and cloud platforms, demand for scalable, efficient, and high-performance server infrastructure is expected to rise, strengthening the growth of the server segment in Vietnam’s data center market.
ELECTRICAL INFRASTRUCTURE
Within electrical infrastructure, the UPS segment held the leading position in Vietnam’s data center market. In Vietnam, data centers predominantly rely on UPS systems equipped with VRLA batteries in an N+1 redundant configuration to ensure reliable power supply and operational continuity. However, some facilities are exploring 2N redundant power infrastructure to meet increasing customer expectations for higher levels of reliability and power resilience.
This shift toward enhanced redundancy is also reflected in NTT DATA’s Ho Chi Minh City 1 data center, which is equipped with block-flexible redundant UPS systems and a dual-power configuration based on N+1 redundancy, strengthening the facility’s power resilience and supporting uninterrupted data center operations.
MECHANICAL INFRASTRUCTURE
In mechanical infrastructure, the cooling segment held the leading position in Vietnam’s data center market in 2025, reflecting the critical role of efficient and reliable cooling systems in maintaining optimal operating conditions for IT equipment. Data center operators are increasingly deploying redundant cooling infrastructure to ensure temperature stability, operational continuity, and energy efficiency.
For instance, FPT Telecom’s FORNIX HN02 data center facility is equipped with air-conditioning systems for room temperature control, along with N+1 redundant precision air-conditioning systems to support reliable cooling operations. Similarly, Viettel IDC’s data centers utilize N+1 redundant chillers, precision air conditioners, and cooling towers to maintain efficient thermal management. In addition to redundancy, Viettel IDC has adopted sustainable cooling practices, including closed-loop cooling systems, rainwater harvesting, and wastewater reuse, highlighting the growing focus on resource efficiency and sustainability within Vietnam’s data center infrastructure.
GENERAL CONSTRUCTION
In 2025, core and shell construction represented the largest segment of Vietnam’s data center general construction market, accounting for 44% of the market. The strong position of this segment is supported by the relatively lower construction costs for data center development in Vietnam compared with other major Southeast Asian markets, such as Malaysia, Indonesia, and Singapore.
The cost advantage provides data center operators and investors with greater flexibility in developing new facilities and expanding existing infrastructure, thereby supporting continued investment in core and shell construction activities. As demand for data center capacity increases, the need for specialized architectural, engineering, and construction expertise is also expected to rise. Archetype Group is involved in providing architecture and engineering design services for FPT Telecom’s data centers, contributing to the planning and development of modern data center facilities in Vietnam. These developments are expected to support the expansion of the country’s data center infrastructure and reinforce demand for general construction services over the forecast period.
TIER STANDARD
In 2025, Tier III facilities represented the dominant tier classification in Vietnam’s data center market, reflecting the strong preference for reliable and resilient infrastructure among data center operators and investors. The leading position of the Tier III segment is supported by the large number of ongoing and underdeveloped data center projects across the country, with a significant share of these facilities being planned or developed to meet Tier III standards.
Most new data centers in Vietnam are designed to comply with Tier III requirements, incorporating a minimum of N+1 redundancy across critical power and cooling infrastructure to improve system availability and minimize the risk of service disruptions. The adoption of Tier III standards enables operators to maintain essential data center operations during equipment maintenance or component failures while providing a higher level of infrastructure reliability. With increasing demand for cloud services, digital platforms, enterprise applications, and other data-intensive workloads, the continued development of Tier III facilities is expected to remain an important factor supporting the expansion of Vietnam’s data center infrastructure.
BY COLOCATION
In 2025, retail colocation represented the dominant service segment in Vietnam’s data center market, supported by the country’s growing demand for reliable and scalable data center infrastructure. Vietnam is emerging as one of the developing data center markets in Southeast Asia and is expected to witness significant growth in data center development over the forecast period.
The increasing number of new and expanding facilities is expected to create greater demand for colocation services, particularly among enterprises seeking flexible infrastructure without the need to develop and operate their own data centers. This ongoing expansion of Vietnam’s data center ecosystem is expected to further support the growth of the retail colocation segment.
COMPETITIVE LANDSCAPE
In the current landscape of colocation investors, several established companies play a significant role. Notable players include CMC Telecom, FPT Telecom, Hanoi Telecom (ECODC), NTT DATA, ST Telemedia Global Data Centres, Viettel IDC, VNPT and VNTT.
The market has witnessed several new players emerge over the past few years. The notable entrants are Epsilon Telecommunications, Gaw Capital, Infracrowd Capital and Siagon Asset Management.
In November 2025, Kinh Bac City Development Holding Corporation (KBC) signed a Memorandum of Understanding (MoU) with Accelerated Infrastructure Capital (AIC) and VietinBank to develop an AI-focused data center complex in Ho Chi Minh City. The project is expected to involve up to $2 billion in investment, financed through a combination of equity and commercial loans.
Vietnam is increasingly being discussed as a potential destination for hyperscalers, with early market buzz around its suitability as a regional hub for cloud and AI infrastructure in Southeast Asia. Google and Alibaba are expected to build their first hyperscale data center in Ho Chi Minh City, which will be operational by 2027.
Vietnam Data Center Industry Leaders
Disclaimer: Major players sorted in no particular order.
VENDOR LANDSCAPE
- IT INFRASTRUCTURE PROVIDERS - Cisco, Dell Technologies, Fujitsu, Hewlett Packard Enterprise, Huawei Technologies, Hitachi Vantara, IBM, Internet Initiative Japan (IIJ), Inspur, Lenovo, NetApp, NVIDIA, NEC and Oracle
- DATA CENTER CONSTRUCTION CONTRACTORS & SUB-CONTRACTORS - Arup, Archetype Group, Aurecon, Apave, AWP Architects, GreenViet, Sato Kogyo, SOL E&C and USDC Technology
- SUPPORT INFRASTRUCTURE PROVIDERS - ABB, Caterpillar, Cummins, Cyber Power Systems, Delta Electronics, Eaton, Johnson Controls, Fuji Electric, HITEC Power Protection, Rehlko (Kohler), Legrand, Mitsubishi Electric, Piller Power Systems, Narada, Rittal, Schneider Electric, Siemens, STULZ, TECO Electric & Machinery, Trane and Vertiv.
- DATA CENTER INVESTORS - CMC Telecom, Edge Centres, FPT Telecom, Hanoi Telecom (ECODC), NTT DATA, ST Telemedia Global Data Centres, Viettel IDC, VNPT and VNTT.
- NEW ENTRANTS - Epsilon Telecommunications, Gaw Capital, Infracrowd Capital and Siagon Asset Management.
RECENT INDUSTRY DEVELOPMENTS
VIETNAM DATA CENTER COLOCATION MARKET
View Colocation Report →TABLE OF CONTENTS FOR VIETNAM DATA CENTER INDUSTRY REPORT
VIETNAM DATA CENTER MARKET REPORT SCOPE
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
MARKET DEFINITION
| Term | Definition |
|---|---|
| PUE | Power Usage Effectiveness — total facility energy divided by IT equipment energy; values closer to 1.0 indicate higher efficiency. |
| Redundancy (N, N+1, 2N) | Design standards describing backup capacity for power and cooling components, ranging from no redundancy (N) to fully duplicated systems (2N). |
| CRAC / CRAH | Computer Room Air Conditioner / Air Handler — equipment used to regulate temperature and humidity in the server environment. |
| Hot Aisle / Cold Aisle | Rack layout convention that separates cool air intake from hot air exhaust to improve cooling efficiency. |
| Colocation (Retail / Wholesale) | Retail colocation serves capacity needs under roughly 250 kW; wholesale colocation serves capacity needs between 250 kW and 4 MW. |
RESEARCH METHODOLOGY
Identify Key Variables
Variables and factors are tested against historical facility-level market data through an iterative process.
Build a Market Model
Market-size estimations are built in nominal terms with a consistent average selling price across the forecast period.
Validate & Finalize
Market numbers and analyst calls are validated through an extensive primary research network across levels and functions.
Research Outputs
Syndicated reports, custom consulting assignments, and facility-level databases.
Facility-level depth
Existing and upcoming facilities tracked across Vietnam.
Exclusive research
80% of Arizton reports are exclusive and first-to-market.
Trusted by leaders
200+ Fortune 500 companies rely on Arizton research.
24x7 availability
Continuous analyst and post-sale support.
Free customization
15–20% free customization on every license tier.
KEY QUESTIONS ANSWERED IN THE REPORT
How big is the Vietnam data center market?
How much MW of power capacity will be added across Vietnam in 2031?
What factors are driving the Vietnam data center market?
Last Refreshed on : September 2026
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