Data centers in Vietnam are experiencing a surge as the economy improves and more companies adopt technology to improve their operations. However, the sector is in its early stages and infrastructure has to grow quickly to meet demand. It’s important that providers ensure uninterrupted power supply, and understand the complex regulatory landscape of the country.
Until recently, the country had strict rules on foreign ownership of data and cloud companies, but that all changed this week. The new Law on Telecommunications has eliminated the cap of 49% on foreign ownership. This permits international investors to own all data and cloud businesses. This is a welcome change for the industry, since it could encourage foreign investment and increase the nation’s technological capabilities.
Google is one company that is taking advantage of this policy shift. A source familiar with the plans has revealed that Google is looking into the possibility of building a “hyperscaled” data center near Ho Chi Minh City. The source didn’t specify the amount of the investment. It could be an important boost to the industry of data centers in Vietnam. It would be the first time a large U.S. tech company made an investment in Vietnam, as large data centers typically prefer to build their facilities in neighboring countries due to security concerns and the high operating costs.
China’s Alibaba is another company that is currently building data centers in Vietnam in order to comply with local laws requiring companies to store local data. To meet this requirement it currently uses data centres owned by telecommunications business valuation corporations Viettel and VNPT.
Ho Chi Minh City, Hanoi and other cities are becoming hubs for cloud service providers. Many international companies, including NTT Global Data Centers, Edge Centres and STT Global Data Centers have invested significant amounts in the region.
Vietnam is an excellent choice for companies looking to invest in data centers. Its large workforce and affordable prices when contrasted with other countries, and favorable government policies make it a great place to do so. But as the market grows and the competition increases, it’s essential to understand the risks and rewards of this lucrative business to maximize their returns.
Data centers consume a lot of energy and, in order to keep pace with increasing demand, it is essential for service providers to have the appropriate infrastructure in place. This includes ensuring a reliable and robust power supply, making sure that the environment for data storage is secure, and providing secure connections. While these concerns can be addressed with right planning and execution, they must be evaluated carefully against the potential rewards of investing in this booming sector. In Vietnam, for example the cost to build a 50 megawatt data center can range from $300 million up to $650 million. This is a large portion of an organization’s IT budget. It is essential to weigh the pros and the cons before making a final decision. If you require assistance with your data center project, get in touch with us for more details.