Vietnam sees strong growth of data centres

Update: 18:17 | 06/01/2023

Foreign and domestic companies are strongly eyeing to develop data centres in Vietnam, as demand for data storage in the country is increasing.

In December, VNG Company put into operation a new and international standard data centre called VNG Data Centre in Ho Chi Minh city. The centre has an initial size of 410 server racks and will expand to 1,600 racks.

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A data centre of Viettel.

Earlier, in October, Viettel also launched the Viettel Cloud ecosystem with 13 centres and more than 9,000 racks, and over 60,000 sq.m of floor area - the largest data centre infrastructure in Vietnam.

The group announced that it will invest another 10 trillion VND (424.4 million) in Viettel Cloud to expand its scale to 17,000 racks by 2025.

In August the same year, CMC Corporation inaugurated an international standard data centre with a scale of 1,200 racks on an area of13,000 sq.m in Ho Chi Minh city, and an investment of 1.5 trillion VND.

Not only domestic enterprises, but famous foreign enterprises also participate in building data centres in Vietnam. For example, in March, Quang Dung Technology Distribution Joint Stock Company under GREENFEED Vietnam Corporation and NTT Global Data Centres Company under Japan's NTT Group jointly built a Tier III centre in Ho Chi Minh city which is expected to officially come into operation in 2024.

Huy Nguyen, co-founder and CEO of KardiaChain, and former senior technical director of Google told Tuoi tre (Youth) newspaper that it is no coincidence that many businesses invest in data centres because the revenue is very large.

The company is currently using the service of a Vietnamese business with a cost of up to 50,000 USD each month, he said. According to ResearchAndMarkets, the world's leading market research store, Vietnam is in the top 10 emerging markets in 2021 in the global data centre market.

The Vietnamese data centre market stood at 858 million USD in 2020 and is forecast to grow at a compounded annual growth rate of nearly 15% until 2026.

The growth in the Vietnamese data centre market is impressive with international standard service delivery capacity, and a large number of organisations and enterprises, according to ResearchAndMarkets.

Statistics show that Vietnam now has nearly 30 data centres with more than 46% based in northern, over 35% in southern, and over 18% in central localities.

This rate is different because large data centres are mainly based in ministries and branches in the north. From 2010, the electricity consumption capacity of the centre in Vietnam has tripled.

Domestic companies expect a data centre system made in Vietnam will contribute to the country’s digital economy.

Tao Duc Thang, chairman and director general of Viettel Group, said it sets a target that each Vietnamese citizen, household, organisation, and enterprise will have a cloud-based data store located in Vietnam, researched, developed and operated by Vietnamese engineers.

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Source: VNA

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