Vietnam is experiencing a significant surge in data centre investments as both local and international players compete to expand their infrastructure in response to the growing demand for artificial intelligence (AI) capabilities. Local tech companies are ramping up their efforts, while major global tech firms are eyeing the Vietnamese market with billions of dollars in planned investments.
In the past year, global tech giants have made substantial investments in AI infrastructure, focusing on data centres and AI-related tools. A significant portion of this investment has flowed into the Asian market, where land is affordable, electricity costs are low, and demand for AI is soaring.
However, many of the existing data centres across Asia are not yet equipped to handle the demands of AI workloads, particularly AI servers. This creates a notable opportunity for the development of new, AI-capable data centres, as well as the upgrading of existing facilities to better meet these needs.
Vietnam is seeing local tech companies take the lead in expanding their data centre capacity. Firms are aggressively increasing their investments in the sector. One has committed to a US$ 500 million investment in data centres and related facilities across Vietnam and Japan by 2028.
Viettel plans to build 11 large-scale data centres with a combined capacity of over 350 MW, about 40% of Vietnam’s total. It is also partnering with an AI leader to develop infrastructure featuring 800 supercomputers and 6,000 GPU cards for AI.
Viettel’s CEO of the Internet Data Centre, Hoang Van Ngoc, has stated that to meet the technological needs of Vietnam’s 100 million people – particularly in fields like generative AI and AI cloud computing – the country’s data centre capacity needs to increase by 15 times. This ambitious goal highlights the urgency of expanding the country’s digital infrastructure to stay competitive in the rapidly evolving AI landscape.
International companies are also entering the Vietnamese data centre market, contributing to the competition and investment in the sector. Various giant technology and e-commerce firms have announced billions of dollars in planned investments, further intensifying the race to build out AI-ready data centre infrastructure.
Vietnam’s advantages in the data centre market are significant. According to Cushman & Wakefield’s latest report, construction costs for data centres in Vietnam are among the lowest in the Asia-Pacific region, averaging US$ 6.9 million per MW. This is just behind Taiwan and considerably lower than other countries in the region.
The lower construction costs, combined with the country’s strategic location and a growing reputation for transparent governance and openness to foreign investment, make Vietnam an attractive hub for data centre development.
Despite the opportunities, several challenges must be addressed to ensure the success of these investments. One of the biggest hurdles is the power supply. Data centres, particularly those focused on AI, require significantly more power than traditional facilities. As a result, Vietnam must invest in upgrading its power grid and developing renewable energy solutions to provide a stable and reliable electricity supply for these large-scale operations.
Furthermore, while the country is making strides in attracting international investment, legal regulations, complex administrative procedures, and a shortage of skilled workers in the AI sector remain significant obstacles to the growth of AI-focused data centres.
For Vietnam to fully capitalise on its potential as a data centre hub, the government will need to streamline regulations, improve workforce training, and ensure the infrastructure is in place to support these large-scale developments.
Vietnam’s success in the growing AI and digital infrastructure sectors will depend on its ability to address key challenges. With the right investments and policies, it is poised to become a key hub for data centre operators.
