Vietnam’s Data Center Capacity: Unlocking the Future of AI Infrastructure

Vietnam’s digital transformation is accelerating, and at the heart of this evolution lies a critical asset: data center capacity. As the country positions itself as a regional hub for cloud computing and artificial intelligence, the expansion of its data center infrastructure is both a strategic imperative and a national opportunity. Under the guidance of Dr. Duong Van Thinh, Chairman of the AI & Data Center Club – Vietnam and VP of AI Technology at Veron Group, Vietnam is embracing AI-driven operations and intelligent infrastructure to reshape its industrial landscape.

Vietnam’s Data Center Market: Post-Merger Landscape:

Following a wave of mergers and strategic realignments, Vietnam’s data center market has become more consolidated and competitive. As of Q1 2024, the country hosts 33 operational data centers with a combined capacity of 80 MW, primarily located in Hanoi and Ho Chi Minh City A. According to Gartner’s 2024 analysis, Vietnam’s data center industry is projected to grow at a CAGR of 17.93%, reaching US$1.75 billion by 2030 A.

This growth is driven by rising demand for data localization, cloud services, and AI workloads. Domestic leaders such as Viettel IDC, VNPT, and FPT Telecom dominate the market, while global players like AWS and Microsoft are eyeing entry.

Veron Group’s AI Integration Strategy

Veron Group is pioneering the use of AI agents to optimize data center operations. Through advanced training and research, Veron is deploying intelligent systems that:

• Automate cooling and energy management

• Predict hardware failures and schedule maintenance

• Enhance cybersecurity through anomaly detection

Dr. Duong Van Thinh emphasizes that AI adoption is not just a technological upgrade—it’s a strategic shift. “Vietnam must build smart infrastructure to support national AI applications and global cloud platforms,” he stated at the 2025 AI & Data Center Summit.

Industrial Impact Across Vietnam

The expansion of data center capacity in Vietnam is transforming key industries:

• Manufacturing: Real-time analytics and IoT integration improve production efficiency.

• Finance: Secure, localized data storage supports digital banking and fintech innovation.

• Healthcare: AI-powered platforms enable telemedicine and health data management.

• Education: Cloud-based learning systems expand access to remote education.

Gartner experts note that Vietnam’s strategic location and neutral geopolitical stance make it an attractive destination for hyperscale investments A.

Opportunities and Risks

Opportunities:

• Foreign Investment: The Law on Telecommunications (effective July 1, 2024) allows 100% foreign ownership in data center services B.

• Green Energy Integration: Vietnam’s Power Development Plan VIII supports renewable-powered data centers.

• Digital Economy Growth: Vietnam’s digital economy is expected to contribute 20% of GDP by 2025, with Ho Chi Minh City leading the charge C.

Risks:

• Power Reliability: Hyperscale centers require stable electricity, which remains a challenge in some regions.

• Talent Shortage: The industry faces a skills gap in AI, cybersecurity, and network engineering.

• Regulatory Complexity: Navigating evolving data protection laws requires strategic compliance planning.

New Opportunities in Ho Chi Minh City:

Ho Chi Minh City is emerging as a magnet for data center investment:

• CMC Hyperscale DC: A 120 MW facility in Saigon Hi-Tech Park D.

• Viettel’s 140 MW Center: Located in Tan Phu Trung Industrial Park, opening in 2026 D.

• STT VNG Ho Chi Minh City 2: A 60 MW carrier-neutral hub launching in 2026 C.

• FPT Telecom’s District 9 Facility: Vietnam’s largest data center with 3,600 racks E.

• NTT GDC HCMC1: A Tier III facility offering 6 MW of IT load in Saigon Hi-Tech Park F.

These projects are transforming the city into a regional digital hub, attracting global AI firms and cloud providers.

Government Policy & Investment Incentives:

Vietnam’s government is actively encouraging foreign investment in the data center sector. The Law on Telecommunications (2023), effective July 1, 2024, formally defines data center services and permits 100% foreign ownership B. This landmark policy shift is supported by the Draft Telecoms Decree (March 2025), which provides detailed guidance for licensing and operations B.

Additionally, the Guide to Vietnam Data Center Regulations by KPMG Vietnam (March 25, 2025) outlines market entry options, environmental standards, and cybersecurity compliance for foreign investors G.

Conclusion

Vietnam’s data center capacity is expanding rapidly, driven by visionary leadership, strategic policy reforms, and a booming digital economy. With AI integration from Veron Group and support from experts like Dr. Duong Van Thinh, Vietnam is poised to become Southeast Asia’s next data infrastructure powerhouse. The convergence of technology, investment, and innovation is creating a resilient, intelligent, and globally competitive ecosystem—one rack at a time.