As the economy expands and more businesses adopt new technologies to streamline their operations and improve efficiency, data centers in Vietnam are experiencing a boom. However, the industry is in its infancy and infrastructure has to scale up quickly to meet the demand. It is essential that the providers provide uninterrupted power supply, and understand the complex regulatory environment of the country.
The country had strict regulations regarding foreign ownership of cloud and data companies until the end of last week. The new Law on Telecommunications has eliminated the cap of 49% on foreign ownership. This allows foreign investors to own all data and cloud businesses. This is a welcome change for the industry, since it will likely encourage foreign investment and increase the capabilities of the country’s tech industry.
One company taking advantage the policy change is Google, which is weighing the possibility of setting up a «hyperscale» data center near Ho Chi Minh City, a source close to the plans said. The source did not provide the size of the investment. It would provide an enormous boost for the industry of data centers in Vietnam. It would be the first time a big U.S. tech company invested in Vietnam, since large data centers typically prefer to build their facilities in countries that are not as affluent due to security concerns and high operating costs.
China’s Alibaba is another company that is currently building data centers in Vietnam to comply with local laws that require companies to store local data. It Sự Khác Biệt Giữa Phòng Dữ Liệu Ảo và Trung Tâm Dữ Liệu currently has data centers owned by telecommunications firms Viettel and VNPT to meet the requirement.
The country is a prime location for cloud service providers and cloud service providers, with Ho Chi Minh City and Hanoi both gaining momentum as data center hubs. Many international companies, including NTT Global Data Centers, Edge Centres and STT Global Data Centers have invested heavily in the region.
With its abundant workforce, competitive pricing when compared to other countries, and a variety of supportive government policies, Vietnam is a good choice for businesses who are looking to invest in data centers. However, as the market grows, it’s crucial that players know the risks and rewards of this lucrative industry to maximize their returns.
Data centers require a significant amount of energy and, in order to meet the increasing demand, it’s crucial for companies to have the right infrastructure in place. This includes ensuring a robust and reliable power supply, as well as ensuring that the environment is secure for storage of data, and ensuring secure connectivity. While these concerns can be addressed with right planning and execution, they should be considered in conjunction with the potential benefits of investing in this expanding business. In Vietnam, for example the cost to build the 50 megawatt data centers can range from $300 million to $650 million. This is a substantial portion of an organization’s IT budget. It is crucial to weigh both the pros and the cons before making a final decision. Contact us if you need assistance with your data center project.
