Press Release

Vietnam Data Center Market Expands with BFSI Segment at a robust CAGR

The Vietnam Data Center Market is rising due to rapid digital transformation, increasing internet penetration, government initiatives, cloud adoption, and growing data storage demands 2025-2029F


According to TechSci Research report, “Data Center Market – Vietnam Industry Size, Share, Trends, Opportunity, and Forecast 2019-2029F, the Vietnam Data Center Market is the rapid pace of digital transformation across various sectors of the economy. As businesses and organizations in Vietnam increasingly embrace digital technologies to modernize their operations, enhance efficiency, and meet evolving customer demands, the demand for robust data center infrastructure has surged. From e-commerce platforms and financial institutions to government agencies and healthcare providers, organizations are leveraging data-driven insights, cloud computing, and advanced technologies such as artificial intelligence and Internet of Things to drive innovation and gain competitive advantage. This digital transformation journey necessitates scalable, secure, and reliable data center solutions to store, process, and manage the vast amounts of data generated and utilized in digital operations. Moreover, as Vietnam positions itself as a digital hub in Southeast Asia, there is a growing need for data center facilities capable of supporting the country's burgeoning digital economy, attracting investments, and driving economic growth. However, amidst the rapid growth of the Vietnam Data Center Market, one significant challenge that data center operators face is infrastructure limitations and the reliability of power supply. While Vietnam has made considerable strides in improving its infrastructure, challenges such as inadequate power grid capacity, outdated facilities, and unreliable power supply continue to pose obstacles to the development and operation of data centers. Power outages and fluctuations are common occurrences in certain regions, leading to disruptions in data center operations and potential data loss. Moreover, the limited availability of high-quality infrastructure, including fiber-optic networks and cooling systems, can hamper the performance and reliability of data center facilities. As data centers require stable and uninterrupted power supply to ensure the continuous operation of critical systems and prevent costly downtime, addressing infrastructure limitations and enhancing power supply reliability are crucial for the sustainable growth of the Vietnam Data Center Market. To mitigate these challenges, concerted efforts are needed to invest in upgrading and modernizing the country's infrastructure, expanding power generation capacity, improving transmission and distribution networks, and implementing advanced cooling technologies to enhance energy efficiency and reduce environmental impact. Additionally, implementing redundant power systems, backup generators, and uninterruptible power supply (UPS) systems can help mitigate the risk of power disruptions and ensure the resilience of data center operations.

 

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The Central Vietnam region is emerging as the fastest-growing region in the Vietnam Data Center Market due to several key factors that uniquely position it for rapid growth and development. Central Vietnam, encompassing provinces such as Da Nang, Quang Nam, and Thua Thien Hue, offers a strategic location at the crossroads of major transportation routes and serves as a gateway to key economic hubs in the country. This geographical advantage makes it an attractive destination for data center investments, facilitating connectivity with both northern and southern regions of Vietnam. Additionally, Central Vietnam is experiencing robust economic growth and urbanization, driven by government initiatives to promote regional development, infrastructure investment, and industrialization. As the region attracts a growing number of businesses, investors, and multinational corporations, there is an increasing demand for data center services to support digital operations, cloud computing, and IT infrastructure requirements. Central Vietnam is witnessing a surge in tourism and hospitality sectors, fueled by its pristine beaches, cultural heritage sites, and vibrant cities. This influx of tourists and visitors contributes to the growth of digital services, online booking platforms, and hospitality technology solutions, driving the need for data center infrastructure to host and process digital transactions, reservations, and customer data. Furthermore, Central Vietnam is emerging as a preferred destination for manufacturing and industrial activities, particularly in sectors such as automotive, electronics, and textiles. As industries adopt Industry 4.0 technologies, smart manufacturing processes, and automation, there is a growing demand for data-driven insights, real-time monitoring, and supply chain optimization, necessitating the deployment of data center facilities to support these digital transformation initiatives. Central Vietnam is investing in smart city initiatives, urban development projects, and digital infrastructure to enhance the quality of life, attract investment, and promote sustainable growth. Smart city technologies such as smart grids, intelligent transportation systems, and digital government services rely on data analytics, IoT devices, and cloud computing, driving the need for data center services to store, process, and analyze large volumes of data generated by these initiatives. Moreover, the region's commitment to renewable energy and environmental sustainability presents opportunities for green data center development, leveraging clean energy sources such as solar and wind power to minimize carbon emissions and reduce operational costs. Central Vietnam boasts a skilled workforce, world-class universities, and research institutions, providing a talent pool equipped with technical expertise and digital skills necessary for data center operations and management. This availability of skilled labor and knowledge resources enhances the region's attractiveness for data center investments and supports the development of a thriving digital ecosystem. Overall, the combination of strategic location, economic growth, urbanization, tourism, industrialization, smart city initiatives, and skilled workforce positions Central Vietnam as the fastest-growing region in the Vietnam Data Center Market, offering immense opportunities for investment and expansion in the digital infrastructure sector.

Based on Type, the Corporate segment dominated the Vietnam Data Center Market and is expected to maintain its dominance during the forecast period. This segment's leadership can be attributed to several key factors, including the rapid digital transformation across various industries, increasing investments in IT infrastructure by corporations, and the growing need for data storage and management solutions. As Vietnamese businesses increasingly shift towards digital operations, there is a heightened demand for robust, secure, and scalable data center solutions to support their operations. Large enterprises, especially in sectors such as finance, telecommunications, manufacturing, and retail, require extensive data center capabilities to manage vast amounts of data, ensure operational continuity, and enhance business agility. These companies often prefer dedicated corporate data centers to maintain control over their data assets, meet regulatory compliance requirements, and secure sensitive information. The rise of Industry 4.0 and the integration of advanced technologies such as artificial intelligence (AI), big data analytics, and Internet of Things (IoT) have further amplified the need for sophisticated corporate data centers. These technologies necessitate substantial computing power and data storage, which corporate data centers are well-equipped to provide. Additionally, the expansion of multinational companies into Vietnam has driven demand for corporate data center services, as these organizations seek to establish a reliable local presence with high standards of data management and security. The Vietnamese government's supportive policies and initiatives aimed at promoting digital transformation and improving IT infrastructure also play a crucial role in bolstering the corporate data center segment. Incentives such as tax benefits, streamlined regulatory processes, and investments in digital infrastructure have created a conducive environment for corporations to invest in data centers. Furthermore, the ongoing development of smart cities and the implementation of 5G technology are driving the need for advanced corporate data centers capable of handling increased data traffic and supporting real-time applications. While the Web Hosting segment is also growing, driven by the rise of e-commerce, online services, and cloud-based applications, the Corporate segment's focus on tailored, high-performance data solutions for enterprise needs ensures its continued dominance. Corporations' preference for dedicated infrastructure to meet specific business and regulatory requirements, combined with continuous technological advancements and strategic investments, positions the Corporate segment to lead the Vietnam Data Center Market well into the future.

 

Key market players in the Vietnam Data Center market are:-

  • Equinix Inc.
  • Digital Realty Trust Inc.
  • NTT Communications Corporation
  • Global Switch Limited
  • Telstra Corporation Limited
  • CyrusOne LLC
  • Kyndryl Inc.
  • KDDI Corporation
  • STT GDC Pte Ltd
  • CenturyLink, Inc.

 

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“The Vietnam Data Center Market is rising due to several key factors, including rapid digital transformation across industries, increasing internet penetration and mobile connectivity, government initiatives promoting the digital economy, adoption of cloud computing and hybrid IT solutions, and growing demand for data storage and processing capabilities. As businesses and organizations in Vietnam embrace digital technologies to modernize operations and meet evolving customer demands, the demand for robust data center infrastructure is surging. This trend is driving investments in data center facilities, connectivity solutions, and managed services, fueling the growth of the Vietnam Data Center Market.Top of Form” said Mr. Karan Chechi, Research Director with TechSci Research, a research-based United States management consulting firm.

“Vietnam Data Center Market By Solution (IT Infrastructure, General Infrastructure, Mechanical Infrastructure and Other Infrastructure), By Type (Corporate and Web Hosting), By End User Industry (IT & Telecom, BFSI, Government and Healthcare), By Region, By Competition, 2019-2029F,” has evaluated the future growth potential of Vietnam Data Center Market and provides statistics & information on market size, structure, and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in Vietnam Data Center Market.

 

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