Many U.S. cloud service suppliers would quickly enter Vietnam’s information middle market, making it more and more aggressive and diversified, property consultancy JLL Vietnam mentioned within the report.
“It’s only a matter of time till Google, AWS, and Microsoft take a look at [data center] growth [in Vietnam].”
Vietnam is taken into account enticing by information middle traders as a result of its strategic geographical location, versatile insurance policies and younger inhabitants, it mentioned.
New laws on cloud computing and information middle providers, set to take impact in 2025, would offer a versatile and clear authorized framework for the event of the info middle market, it mentioned.
In the meantime, the nationwide energy growth plan would assist guarantee steady energy provide for the rising information middle trade, it mentioned.
Affordable building prices, of US$6-13 million per MW of knowledge middle capability, are additionally a bonus for Vietnam, it mentioned.
In the meantime, the fee is escalating in Asia, particularly in Japan, Singapore and South Korea, making nations with decrease prices like China, India and Vietnam interesting options, it defined.
The Vietnamese market is at the moment dominated by home telecommunication firms akin to Viettel IDC, FPT Telecom, VNPT, and CMC Telecom, JLL famous.
With the demand for cloud storage and large information analytic providers rising quickly in recent times, many overseas companies have entered Vietnam.
Some notable initiatives involving overseas enterprises embrace Hong Kong fund administration agency Gaw Capital’s 20-MW information middle and the Ho Chi Minh Metropolis 1 Knowledge Heart, a $70-million three way partnership established by Japanese telecom firm NTT and Vietnamese expertise distributor QD.TEK.
Each are in HCMC’s Saigon Hello-Tech Park.
Chinese language e-commerce large Alibaba can also be contemplating organising a knowledge middle in Vietnam, Dang Minh Tam, the lead resolution architect at Alibaba Cloud, mentioned in a current interview with Nikkei Asia.
Celina Chua, information middle consumer options director at JLL, mentioned: “Vietnam is changing into a hotspot for information middle funding in Asia.”
One other actual property consultancy, Savills, mentioned in a current report that Vietnam’s information middle trade is among the many quickest rising on the earth.
But it surely warned that speedy progress comes with challenges akin to guaranteeing information privateness and cybersecurity, and managing useful resource consumption to develop sustainably.
Vietnam has 28 information facilities with a complete capability of 45MW.
