It is forecasted that in 2025, Vietnam's data center market will experience a strong boom, especially in the AI sector. By 2028, the country's data center market is expected to reach a valuation of $1 billion, demonstrating substantial growth compared to $561 million in 2022.
Vietnam's data center (DC) market is emerging as a focal point of attention. ACB Securities has released a report providing an overview of this market, covering key aspects such as market insights, expansion trends, industry shifts, and the leading enterprises shaping the sector.
Global Data Center Market Overview
The data center (DC) market has emerged as a key sector in recent years, attracting significant investment from countries worldwide. According to Gartner's report in October 2024, global IT spending is estimated to increase by 34.7% year-over-year. The total capacity of global data centers was projected to reach nearly 33 gigawatts (GW) in 2023. The rapid advancement of artificial intelligence (AI), particularly generative AI, is the primary driver fueling the demand for this infrastructure.
With the ongoing digital transformation and the increasing adoption of emerging technologies, the data center market is expected to sustain its growth in the coming years. However, the most critical factor for hyperscale data center projects remains land availability. Securing suitable land at reasonable costs is essential to ensuring the industry's long-term sustainable development.
Land availability is also one of the key factors driving the relocation trend. According to observations by Cushman & Wakefield, major markets such as Singapore, New York/New Jersey, Frankfurt, Hong Kong, and Silicon Valley are all facing land constraints, preventing investors from expanding further or prompting them to consider relocation.
Singapore and Hong Kong have lost their positions in the ranking of the world's top 10 DC markets due to this shifting trend. Singapore has traditionally been a key DC market in the region, as noted by DB Byte. However, its growth potential is now limited by land availability and constrained power supply.
Where Does Vietnam Stand on the Global Data Center Map?
As major markets face land and resource constraints, investors are shifting their focus to secondary and tertiary markets. Southeast Asia, including Vietnam, has emerged as a promising destination. While Vietnam remains relatively new compared to other Asian markets like Singapore, Japan, and China, the rapid increase in digital transformation demand across the region positions Vietnam as a highly promising market.
Notably, Vietnam has made significant strides in the technology sector, attracting major players such as Nvidia, Google, Apple, and Samsung. The Vietnamese government has also signed cooperation agreements with Nvidia to establish an AI research and development center, reinforcing the country’s strategic position in the global tech industry.
Currently, the United States is the world’s largest data center market, accounting for approximately 43% of the global operational data center capacity as of Q4 2023, followed by the APAC region (30%) and Europe (21%).
Alongside traditional markets such as Australia, China, Japan, and Singapore, the Southeast Asian region is accelerating its growth. Both regional and international investors are increasingly interested in establishing and expanding their presence in this area, driven by the rising demand for digital transformation and the development of digital economies across the region.
Meanwhile, Malaysia, Indonesia, Thailand, the Philippines, and Vietnam are emerging as the next promising markets. According to DB Byte, Malaysia stands out the most, while Vietnam is still in its early stages as a frontier market.
A series of positive developments signal a major shift in Vietnam's data center market. The latest milestone is Nvidia's recent announcement. In December 2024, the Vietnamese government signed a cooperation agreement with Nvidia to establish an AI research and development center as well as an AI data center. Nvidia’s CEO affirmed that “Vietnam is my second home,” highlighting the country’s growing appeal as a destination for Nvidia and other global tech companies.
Beyond Nvidia, other major technology firms such as Google, Apple, Samsung, Intel, and Qualcomm have also been expanding their presence in Vietnam.
Meanwhile, domestic technology companies are making strides, solidifying Vietnam’s position on the global technology map.
Earlier, in April 2024, FPT announced a partnership with Nvidia to advance AI and cloud computing, committing to a $200 million investment in building an AI factory. Shortly after, FPT revealed plans to construct AI factories in both Vietnam and Japan. VNG also joined the race by unveiling its plan to develop a hyperscale AI data center in Thailand.
Vietnam is increasingly recognized as an attractive destination for data center investments due to its ambition to become a regional technology hub, drive digital transformation, and build a digital economy, supported by favorable regulatory initiatives. Additionally, the country offers a cost advantage, making it a competitive location for investors.
The "giants" dominating the data center market in Vietnam
According to a report by Savills and Cloudscene, Vietnam's data center capacity was estimated to reach approximately 80MW as of Q1 2024. The country has a total of 33 data centers and 49 service providers, with Hanoi and Ho Chi Minh City leading in numbers, having 15 and 16 data centers, respectively.
Vietnam’s data center market is projected to reach a value of $1.04 billion by 2028, experiencing significant growth from $561 million in 2022. Although the market size remains modest, substantial investments from both domestic and international enterprises are accelerating Vietnam’s development, leveraging the increasing demand for AI-driven infrastructure.
Telecommunications technology companies are dominating Vietnam’s data center market. The five major players—Viettel, VNPT, FPT Telecom, CMC Telecom (under CMC Corp), and VNZ (VNG Corp)—collectively hold nearly 70% of the market share in terms of the number of data centers. Among them, Viettel and VNPT each account for 21%, FPT Telecom holds 12%, CMC Telecom 9%, and VNZ 6%.
FPT has made significant strides in developing AI data centers, with substantial investments in infrastructure and strategic partnerships with Nvidia. The company anticipates that its AI Factory will generate $100 million in revenue in 2025, accounting for 3% of FPT's projected 2025 revenue, according to ACBS estimates. The AI Factory is expected to achieve an EBITDA margin of 50% and will be recorded under FPT’s domestic IT services segment.
By 2025, Vietnam’s data center (DC) market is expected to experience a significant boom, particularly in the AI sector, as both domestic and international companies continue to invest heavily in data infrastructure to meet the market's growing demands.
Vietnam is undergoing a rapid transformation to establish itself as a regional technology hub in Southeast Asia. Major investments in data centers and digital infrastructure by Nvidia, Google, Apple, and other tech giants—along with government support—are creating a solid foundation for the industry's expansion in the coming years. The soaring demand for AI and cloud services will be a key driver, enabling Vietnam to further grow its data center market and attract more investments from both domestic and international organizations.
(According to Kien thuc dau tu)
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