Vietnam is rapidly emerging as a key digital hub in Southeast Asia, with its data center market experiencing significant growth in 2025. Driven by regulatory reforms, substantial investments, and a focus on artificial intelligence (AI), Vietnam’s data center portfolio is expanding at an impressive pace. This article provides an updated look at the market, incorporating the latest insights from a comprehensive database on Vietnam’s data center landscape, including key players, growth projections, and challenges shaping the future.
A Dynamic Digital Landscape
In 2025, Vietnam’s data center market is thriving, supported by approximately 22 operational facilities, primarily located in Ho Chi Minh City, Hanoi, and Da Nang. These data centers are critical to achieving Vietnam’s goal of having its digital economy contribute 20% to GDP by 2025. The Law on Telecommunications, effective July 1, 2024, has been a game-changer, allowing 100% foreign ownership of data centers since January 2025. This reform, coupled with Decree 133/2025, which simplifies telecom regulations and decentralizes licensing, has attracted global investors. Additionally, the upcoming Law on Personal Data Protection, set to take effect later in 2025, will further refine data handling practices, aligning with global standards while ensuring compliance with Vietnam’s Cybersecurity Law.
Major Investments and AI Leadership
Vietnam is drawing significant attention from global tech giants. In January 2025, Nvidia announced an AI research and development center in Vietnam and partnered with Viettel Group to develop a state-of-the-art data center leveraging Nvidia’s technology. This collaboration positions Vietnam as a leader in AI innovation in Southeast Asia. Other notable developments include:
- STT GDC’s Facility: Announced in May 2024, STT GDC is building a hyperscale data center in Tan Thuan, Ho Chi Minh City, and has acquired another facility in the same city.
- Alibaba’s Data Center: Also announced in May 2024, Alibaba’s planned data center underscores Vietnam’s appeal to global hyperscalers.
- Viettel’s New Campus: Viettel broke ground on its largest data center campus yet in Ho Chi Minh City’s Tan Phu Trung Industrial Park in June 2025, with phase one of the 6,500-rack facility set to go live in 2026.
- Saigontel’s Planned Facility: Saigontel, part of Saigon Invest Group, has proposed a new data center in the same Tan Phu Trung Industrial Park, further boosting Ho Chi Minh City’s capacity.
- CMC AI Digital Infrastructure: Launched by CMC Corporation in early 2025, this initiative focuses on hyperscale data centers to support cloud and AI services.
These projects highlight Vietnam’s strategic importance as a digital hub, driven by its geopolitical neutrality, growing internet penetration (77.93 million users as of January 2023), and government support for digital transformation.
Market Size and Growth Projections
According to a recent database, Vietnam’s data center market in 2025 includes 22 existing facilities and 12 upcoming data centers, with a strong focus on Ho Chi Minh City and Hanoi, which account for approximately 90% of new capacity. The market’s total power capacity is estimated at 524.7 MW in 2025, projected to nearly double to 950.4 MW by 2030 at a Compound Annual Growth Rate (CAGR) of 12.61%. Colocation revenue is expected to reach USD 588.9 million in 2025, growing to USD 1,403.4 million by 2030 at a CAGR of 18.97%.
Key operators driving this growth include CMC Telecom, DTS Telecom, Edge Centres, FPT Telecom, OneHub Saigon, Infracrowd Capital, NTT, VNPT, Saigontel, Viettel IDC, and others. The database highlights 12 major investors/operators, reflecting a competitive and diverse market.
Here’s an updated summary of key metrics:
- Existing Data Centers: 22, in Ho Chi Minh City, Hanoi, Da Nang
- Upcoming Data Centers: 12, with 90% in Ho Chi Minh City and Hanoi
- Market Capacity (2025): 524.7 MW, projected to 950.4 MW by 2030
- Colocation Revenue (2025): USD 588.9M, projected to USD 1,403.4M by 2030
- Key Operators: CMC Telecom, DTS Telecom, FPT Telecom, Viettel IDC, NTT, Saigontel, etc.
Challenges to Address
Despite its rapid growth, Vietnam’s data center sector faces challenges. A reliable power supply remains a critical issue, as the current infrastructure struggles to meet the energy demands of expanding facilities. Significant investments in power grids and renewable energy solutions are needed to sustain growth. Additionally, developing a skilled workforce with expertise in data center management, cybersecurity, and network infrastructure is essential to support the industry’s expansion.
Opportunities for Innovation
These challenges present opportunities for innovation. Vietnam is exploring energy-efficient technologies, such as liquid cooling and green AI-ready data centers, to address power concerns while aligning with global sustainability goals. The government’s National Digital Transformation Programme supports growth in sectors like finance, retail, and healthcare, all of which rely on robust data infrastructure. The focus on AI and cloud services also positions Vietnam to lead in cutting-edge tech solutions.
Competitive Investor and Operator Landscape
The market is driven by a mix of domestic and international players. Local operators like Viettel IDC, FPT Telecom, CMC Telecom, and VNPT are joined by global firms like NTT, Edge Centres, and ST Telemedia Global Data Centres. New entrants, such as Infracrowd Capital and OneHub Saigon, are further diversifying the landscape. Viettel’s recognition at the Globee Awards for Technology 2025, winning 19 awards, underscores its leadership in innovation.
Looking Forward
Vietnam’s data center portfolio in 2025 is a testament to its digital ambition and strategic positioning. With a market capacity of 524.7 MW, major investments in AI, and supportive policies like Decree 133/2025, Vietnam is on track to become a regional tech hub. By addressing power reliability and workforce development, the country can sustain its momentum and solidify its role in the global digital economy.
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