Driven by competitive costs, strong government support, and rapid digital infrastructure demand, Vietnam is positioning itself as a rising data hub in Southeast Asia.

The Saigon Hi-tech Park in HCMC.

According to Cushman & Wakefield's latest Asia-Pacific Data Center Investment Landscape report, Vietnam now ranks second in the region for data center investment returns, with a yield on cost (YoC) of 17.5–18.8%, just behind Singapore's 21–23%.

Several major data center projects have been launched in 2025. In Ho Chi Minh City, tech firm CMC Group secured approval to build its CMC Hyperscale DC in the Saigon Hi-Tech Park, with an initial capacity of 30 MW and scalability up to 120 MW. The US$250 million facility is slated to begin construction in 2026.

Also in HCMC, the Viettel Military Industry and Telecoms Group (Viettel) broke ground in April on a 140 MW data center in Tan Phu Trung Industrial Park. Spanning nearly 4 hectares, the facility will house up to 10,000 racks and is expected to partially open in Q1 2026.

Previously, the Vietnam Posts and Telecommunications Group (VNPT) opened its eighth data center, spanning 23,000 square meters at Hoa Lac Hi-Tech Park in Hanoi. The Tier III Uptime-certified facility contains around 2,000 racks.

Tech firm VNG has launched a 12,400-square-meter center in Tan Thuan Export Processing Zone, also in HCMC, offering 410 racks with plans to expand to 1,600.

FPT Telecom and MobiFone are also rapidly expanding their internationally certified data infrastructure.

Viettel Chairman and General Director Tao Duc Thang said the group is shifting from traditional data centers to hyperscale facilities, aimed at serving national-level AI applications, big data analytics, and cloud platforms.

CMC Chairman Nguyen Trung Chinh added that their investment targets attracting global AI firms and transforming HCMC into a regional digital hub.

Vietnam offers some of the region's lowest development costs - $7.1 million per MW compared to the Asia-Pacific average of $10.1 million and Japan’s $16.1 million. Capitalization rates in Vietnam also stand higher than regional averages at 7–8%.

Pritesh Swamy, head of research and insights at Cushman & Wakefield’s Asia-Pacific Data Center Group, highlighted the significance of Vietnam’s allowing full foreign ownership of land and data center operations. Coupled with the revised Law on Telecommunications effective from July 1, 2024, which permits 100% foreign investment in data center services, Vietnam is opening up to global players.

Research and Markets forecasts the Vietnamese data center market could reach $1.6 billion by 2030, with its Compound Annual Growth Rate at 15–18%.

The global shift toward AI, IoT, 5G, blockchain, and new cloud computing models is fueling Vietnam’s data center growth.

AI servers now account for over 72% of global server investment - up from 46% in 2024 - according to Viettel IDC Director Le Ba Tan. He noted the rising trend of leasing infrastructure, with tech giants like Meta spending over $14 billion on third-party capacity to manage soaring AI demands.

Vu The Binh, Secretary General of the Vietnam Internet Association, said Vietnam’s data centers are well-positioned to capture foreign demand and global content localization trends.

With a neutral geopolitical stance, competitive costs, and booming domestic demand, Vietnam could rival Thailand and Indonesia, and potentially replace Singapore in the mid-tier market segment.

Strategically located near international subsea cables, cities such as Hanoi, HCMC, Da Nang, and Bac Ninh are becoming prime data center destinations due to high bandwidth connectivity.

However, challenges remain. Hyperscale centers require robust power supply and skilled data center professionals. The country's digital infrastructure also lags behind regional peers, with only five existing undersea cable routes and two more under construction.

Experts say that with improved connectivity, stable power, and enabling policies, Vietnam could become Southeast Asia's new data hub within 5 to 10 years. In the AI and data-driven era, the country has the potential not only to export digital services but also to reshape the global data center landscape.

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