In Vietnam, demand for infrastructure supporting AI, cloud computing, and digital services is rising at an unprecedented level. (Illustrative photo: VNA)
Vietnam is gaining momentum as cost advantages, the rise of AI, and the national digital transformation drive strong demand. Yet the sector must still overcome legal barriers and ensure sufficient electricity supply.
New momentum from the digital era
According to the CBRE Asia-Pacific Investor Intentions Survey 2025, published by CBRE Vietnam, data centres have become the region’s second most preferred alternative asset class. Demand in Vietnam is rising sharply as AI, cloud computing, and digital services expand at unprecedented levels.
Studies show that about 70 per cent of the global data centre workload from 2023 to 2030 will relate to AI, boosting infrastructure demand at a compound annual growth rate of 19-22 per cent. The Asia-Pacific region is expected to account for 45-55 GW of global demand by 2028, signalling a shift of data centres towards emerging markets where Vietnam is highly rated for its competitive costs.
Generative AI is also increasing the need for higher rack densities and stronger cooling systems. In Vietnam, new projects must optimise designs for high-density power capacity. CMC Tan Thuan Data Centre, for instance, has configured its infrastructure to support up to 20 kW per rack.
CBRE notes that Vietnam has one of the region’s fastest-growing digital markets, with 80 million Internet users, equal to 79 per cent of the population, and a mobile penetration rate of 164 per cent. The digital economy is expanding, with e-commerce targeting a GMV of USD 35 billion by 2025, while the cloud market is projected to grow at a CAGR of 21.65 per cent through 2030.
The National Data Centre, which began official operations on August 19, 2025, is expected to increase demand for high-performance computing, data-sharing systems, and cloud services for government agencies. It also introduces new operational and cybersecurity standards, creating advantages for domestic providers such as Viettel and VNPT and driving investment in system standardisation.
Opportunities for breakthrough
Despite strong investor interest, the scale of Vietnam’s data centre sector remains modest. As of October, total operational capacity reached 104 MW, only one-tenth of Shanghai’s 1,071 MW and far behind Singapore’s 738 MW.
Five major players, mainly telecom operators and State-owned enterprises, control 97 per cent of capacity. Viettel IDC leads with a 41 per cent market share (42 MW), followed by VNPT (25 MW). This high concentration highlights the barriers facing foreign investors entering the market.
However, long-term growth potential is significant. Planned additional capacity is expected to reach 589 MW, expanding the market 5.6-fold after 2030. Key hotspots include Ho Chi Minh City, forecast to grow by 811 per cent, and Binh Duong province, by 1,071 per cent. The Tan Phu Trung Data Centre (Viettel, 140 MW) is Vietnam’s first mega-scale project.
Construction cost competitiveness is one of Vietnam’s strongest advantages. According to CBRE and Turner & Townsend, building a Tier-III data centre in Ho Chi Minh City or Hanoi costs about USD 7 million per MW, roughly 50 per cent lower than in Tokyo or Singapore.
Vietnam also benefits from efforts to expand international connectivity. The Government aims to deploy at least 10 new submarine cable routes by 2030, helping reduce latency, a key factor for establishing availability zones for cloud providers such as AWS, Google Cloud, and Microsoft.
Along with these advantages, the amended Investment Law, digital economy policies, and a young workforce, with a target of 75 per cent professionally trained by 2030, provide a strong macro foundation for Vietnam’s long-term data centre growth.
