Report Overview

Rising digitalization, increased cloud adoption, expanding e-commerce, and government support for technology infrastructure fuel the demand for data storage and processing, attracting investments and driving the rapid expansion of Vietnam Data Center Market during the forecast period between 2023 and 2029.

Vietnam Data Center Market – Industry Trends & Forecast Report, 2029

Vietnam data center market size was estimated at USD 557.43 million in 2022. During the forecast period between 2023 and 2029, the size of Vietnam data center market is projected to grow at a CAGR of 10.8% reaching a value of USD 1,142.79 million by 2029. The Vietnam data center market is experiencing robust growth driven by increasing digitalization, cloud adoption, and data-driven services. The demand for reliable and efficient data storage solutions has led to rising investments in infrastructure, both from local and international players. The country's strategic location, favorable economic conditions, and supportive government initiatives further attract data center development. As internet usage expands, businesses are prioritizing data security and low latency, boosting the market's expansion. However, challenges like energy constraints and regulatory complexities require attention. Overall, Vietnam's data center market is on a trajectory of rapid expansion, fueled by technological advancements and evolving business landscapes.

Vietnam Data Center Market - Overview

A data center is a central location that houses a network of computing resources, such as servers, storage systems, networking equipment, and security devices. It is intended for storing, processing, managing, and distributing massive amounts of data and applications for a variety of uses including cloud computing, corporate operations, and research. To ensure continuous operation, data centers include high levels of redundancy, cooling, and security. They play an important role in modern IT infrastructure, allowing businesses to manage and access digital information more efficiently while supporting the expanding demands of technology-driven services and applications.

Growth Drivers

Booming Renewable Energy Sector Powers Growth of Vietnam Data Center Market

Vietnam's data center market is thriving due to the rapid expansion of renewable energy sources. The country's commitment to sustainable power solutions, including wind and solar, has attracted data center operators seeking to reduce their carbon footprint. The abundant supply of clean energy not only ensures reliable and cost-effective operations but also aligns with global environmental goals. As businesses prioritize eco-friendly practices, Vietnam's data center market experiences a surge in demand, leveraging its renewable energy advantage to attract investments and establish itself as a regional hub for sustainable digital infrastructure.

Digital Transformation Igniting Expansion of Vietnam Data Center Market

Vietnam's burgeoning digital economy and rapid adoption of cloud computing are propelling the expansion of its data center market. With increasing demand for online services, e-commerce, and tech-driven solutions, businesses seek reliable data storage and processing capabilities. The government's favorable policies promoting IT infrastructure development further attract local and international investors. This convergence of factors drives the need for modern data centers, fostering innovation, job creation, and economic growth while positioning Vietnam as a regional tech hub.

Restraints

Infrastructure Restraints

As Vietnam's digital landscape expands rapidly, its data center market encounters infrastructure limitations. The surge in data consumption, driven by e-commerce, IoT, and cloud services, strains existing facilities. Inadequate power supply, cooling systems, and connectivity hinder optimal performance. As demand escalates, addressing these restraints becomes paramount for sustaining the country's technological growth and attracting foreign investment. Collaborative efforts between government initiatives, private sector investments, and technological innovation are imperative to overcome these challenges and establish a robust data center ecosystem in Vietnam.

Impact of COVID-19 on Vietnam Data Center Market

The COVID-19 pandemic catalyzed significant shifts in Vietnam's data center market. With heightened reliance on digital infrastructure, demand surged for cloud services, remote work solutions, and e-commerce platforms. Lockdowns accelerated digital transformation among businesses, fostering greater data storage needs. The market witnessed increasing investments in robust data center facilities to accommodate the evolving landscape. However, supply chain disruptions and labor challenges posed hurdles. As the pandemic highlighted the critical role of data centers, Vietnam's market adapted to new norms, blending growth opportunities with operational resilience in an ever-changing global environment.

Vietnam Data Center Market

Segmental Coverage

Vietnam Data Center Market – By Type

Based on type, Vietnam data center market is divided into Colocation, Hyperscale, and Edge segments. The colocation segment contributes the most to the Vietnam data center market by type. This data center service model involves firms renting space, electricity, and cooling infrastructure to house their IT equipment. Colocation facilities offer a shared environment in which many businesses can house their servers and networking equipment, resulting in cost savings and optimal resource utilization. Because of its flexibility, scalability, and cost-effective solutions, the Colocation category has emerged as the main player in the Vietnam data center market.

Vietnam Data Center Market – By Component

By component, Vietnam data center market is split into Solution and Services segments. These segments include a variety of offerings targeted at satisfying the industry's unique needs. Services include maintenance, support, consultancy, and managed services, whereas solutions include hardware, software, and infrastructure components. This division illustrates the complete strategy adopted to meet the demands of South Africa's expanding data center landscape.

Vietnam Data Center Market – By Organization Size

By organization size, Vietnam data center market is divided into Small & Medium-sized Enterprises (SMEs) and Large Enterprises segments. Large-scale organizations often necessitate significant computer resources and storage capacity, fueling demand for modern data center solutions. Their complicated activities demand a strong infrastructure for data management, processing, and security. As a result, the large enterprises segment is crucial in defining the growth and development of the South African data center industry.

Vietnam Data Center Market – By End User

Based on end user, Vietnam data center market is divided into BFSI, IT & Telecom, Government, Energy & Utilities segments. The information technology (IT) & telecommunications segment is the largest end user in the Vietnam data center market. IT organizations and telecommunications providers need a strong data center infrastructure to support their operations and rising client base as a result of the ongoing digital transformation. This market covers a wide range of services, such as network connectivity, cloud computing, and data storage. The IT and telecom industry's reliance on data centers becomes crucial as the demand for fast, seamless connectivity grows. These infrastructures guarantee effective data processing, decreased latency, and dependable service provision.

Competitive Landscape

Major players in the Vietnam data center market include FPT Telecom, Viettel IDC, CMC Corporation, VNPT Data, VNG Cloud, MatBao, CMC Telecom, KDDI Vietnam, Hanel One, and SCTV Co. Ltd. To grow their market share, these companies are also focusing on investing in innovations, collaborations, and expansions

Recent Developments

• In September 2021 - Viettel jointly conducted trials with Samsung in Da Nang. In early September 2021, Viettel partnered with Ericsson and Qualcomm to test and achieve 5G data transmission speeds over 4.7 Gbps.

• In September 2021 - VNPT upgraded its backbone and core networks, developed 4G, 5G, and M2M/IoT platforms, conducted commercial tests of 5G services, and signed an agreement with Nokia to develop and apply new networking technologies.

Scope of the Report

By Type

• Colocation

• Hyperscale

• Edge

By Component

• Solution

• Services

By Organization Size

• Small & Medium-sized Enterprises (SMEs)

• Large Enterprises

By End User

• BFSI

• IT & Telecom

• Government

• Energy & Utilities