Vietnam Data Center Construction Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR (2024 - 2030) | 8.84 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Vietnam Data Center Construction Market Analysis
The Vietnam Data Center Construction Market is expected to register a CAGR of 8.84% during the forecast period.
The Vietnam data center construction market is projected to register a CAGR of 8.84%. The rising number of smartphone users and growing internet penetration is driving dependence on the cloud, telecom, and E-commerce, resulting in the need for more data center construction.
- Vietnam has 85% of adults using smartphones as of 2022. Vietnam aims to increase this proportion according to its draft National Digital Infrastructure Strategy by 2025. The Telecommunications Department of the Ministry of Information and Communications (MIC) notes that various digital initiatives are considered to push smartphone adoption in the country.
- According to MIC's press release, Hai Phong has the highest percentage of adults using smartphones at 78.4% and Da Nang at 77.8%. The adult smartphone usage rate is 75.7% in Ho Chi Minh City and 74.5% in Hanoi. Correspondingly, the provinces with the lowest percentage of the population using feature phones are Da Nang at 6.3%, Ho Chi Minh City at 7.9%, and Ca Mau at 7.3%.
- Furthermore, the digital economy and social development are top priorities in most development strategies. Local internet service providers (ISPs) in Vietnam plan to develop a cable network in response to frequent network breakdowns on the Asia America Gateway (AAG) submarine telecommunication cable. Thus such infrastructure developments are driving the need for a data center in the country.
- Environmental, cost and workforce-related challenges could restrain the Veitnamiese data center construction market. The environmental impacts are wide-reaching, impacting climate change, pollution, biodiversity, and natural resources. Though the challenges are broad, they present many opportunities for improvement and long-lasting positive impact. The cost of constructing the data center is also high, which could restrain small and medium enterprises from setting up a new center. The vendor's focus is on the regions that have lower costs for construction.
Vietnam Data Center Construction Market Trends
Tier 3 is the Largest Tier Type
- The growth in uninterrupted business services is causing Tier 1 & 2 facilities to lose demand. A growing number of global companies are creating business continuity services and shifting priority to tier 3 data centers.
- The tier 3 sector in the Vietnamese data center market reached an IT load capacity of 128.5 MW in 2022. It is expected to register a CAGR of 1.94% to reach 146.5 MW by 2029. There is an increased investment in data center infrastructure and technological advancements. It is expected to create lucrative opportunities for market growth in 2029.
- Online entertainment, such as video and music streaming and games, was another activity gaining momentum among internet users across Vietnam. In rural areas, video and movie streaming has been one of the major daily online activities in recent years. YouTube was the most popular movie streaming platform. These services need data center facilities with minimum downtime and 24/7 support, which tier 3 facilities can offer.
- Vietnam had 77.93 million internet users in January 2023. The number of users increased by 5.3 million (+7.3%) between 2022 and 2023.
- The Vietnamese market is nascent for tier 4 facilities since it has many infrastructural inefficiencies and hiccups. Hence, as per analysis, the market has not witnessed any developments for the highest tier-based facilities.
IT and Telecom is Expected to Hold Significant Market Share
- The telecommunications industry is looking toward institutionalization to supervise and promote digital transformation, making the process a foundation for developing the digital economy and society. The Vietnam Radio and Electronics Association suggested that 80% of Vietnamese data are created abroad. The country is taking necessary measures to produce data in Vietnam and aims to generate revenues from the national data infrastructure, which may account for 1% of the GDP by 2025.
- The telecom segment of the Vietnamese data center market reached an IT load capacity of 14.04 MW in 2022. It is expected to record a CAGR of 9.57% to reach a capacity of 26.62 MW by 2029. The segment is expected to hold a market share of 14.5% by the end of the forecast period.
- The deployment of 5G networks may boost the region's digital economy and lead to higher demand for high-bandwidth networking infrastructure. For instance, in November 2021, Amazon Web Services (AWS) announced AWS outposts in Vietnam. Telecommunication services increased by 0.3% from 2020. The telecom segment has seen a drop in data prices since 2018, causing a double or triple growth in data traffic.
- In May 2022, Vietnam Posts and Telecommunications Group (VNPT), a leading provider of digital and telecommunications services in Vietnam, and Casa Systems, a leading provider of physical and cloud-native infrastructure technology solutions for mobile, cable, and fixed networks, signed an MoU to explore 5G capabilities and pave the way for next-generation network services in Vietnam. Such initiatives are expected to drive the telecom segment of the Vietnamese data center market in the coming years.
Vietnam Data Center Construction Industry Overview
The Vietnam data center market is fairly consolidated, with the top five companies occupying the majority of the market share. Some of the major companies are Aurecon, Archetype Group, NEC Vietnam, Dell Technologies, and Cisco Systems.
In January 2023, VNG Corporation announced the opening of its new data center in Ho Chi Minh City, which houses 410 racks. In addition, the company has plans to upgrade it to 1600 racks to meet the growing digital transformation requirements across the businesses. This provides more opportunities for the vendors in the market studied.
In August 2022, Amazon Web Services announced the launch of its edge data centers in Hanoi and Ho Chi Minh City to provide improved applications for businesses that depend on the data centers. The new locations offer edge networking service Amazon cloud front integrated with security service AWS Sheild that includes Distributed Denial of Service (DDoS), Web Application Firewall (WAF), and bot protection.
Vietnam Data Center Construction Market Leaders
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Aurecon
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Archetype Group
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NEC Vietnam
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Dell Technologies
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Cisco Systems
*Disclaimer: Major Players sorted in no particular order
Vietnam Data Center Construction Market News
- September 2021: Viettel jointly conducted trials with Samsung in Da Nang, in early September 2021. Viettel partnered with Ericsson and Qualcomm to test and achieve 5G data transmission speeds over 4.7 Gbps.
- September 2021: VNPT upgraded its backbone and core networks, and developed 4G, 5G, and M2M/IoT platforms. It conducted commercial tests of 5G services and signed an agreement with Nokia to develop and apply new networking technologies.
Vietnam Data Center Construction Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumption & Market Definition
- 1.2 Scope of the Study
2. Research Methodology
3. Executive Summary
4. Market Dynamics
- 4.1 Market Overview
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4.2 Market Drivers
- 4.2.1 Increased Migration to Cloud-based Business Operations
- 4.2.2 Rise of Green Data Centers
- 4.2.3 Government Support in the Form of Tax Incentives for Development of Data Centers
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4.3 Market Restraints
- 4.3.1 Higher Initial Investments and Low Availability of Resources
- 4.4 Value Chain / Supply Chain Analysis
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4.5 Industry Attractiveness - Porter's Five Forces Analysis
- 4.5.1 Threat of New Entrants
- 4.5.2 Bargaining Power of Buyers/Consumers
- 4.5.3 Bargaining Power of Suppliers
- 4.5.4 Threat of Substitute Products
- 4.5.5 Intensity of Competitive Rivalry
- 4.6 Assessment of COVID-19 Impact
5. Key Industry Statistics
- 5.1 Planned/Under Construction IT Load Capacity
- 5.2 Planned/Under Construction Raised Floor Space
- 5.3 Planned/Under Construction Submarine Cable
6. MARKET SEGMENTATION
-
6.1 Tier Type
- 6.1.1 Tier 1 and 2
- 6.1.2 Tier 3
- 6.1.3 Tier 4
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6.2 Data Center Size
- 6.2.1 Small
- 6.2.2 Medium
- 6.2.3 Large
- 6.2.4 Mega
- 6.2.5 Massive
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6.3 Infrastructure
- 6.3.1 Cooling Infrastructure
- 6.3.1.1 Air-based Cooling
- 6.3.1.2 Liquid-based Cooling
- 6.3.1.3 Evaporative Cooling
- 6.3.2 Power Infrastructure
- 6.3.2.1 UPS Systems
- 6.3.2.2 Generators
- 6.3.2.3 Power Distribution Unit (PDU)
- 6.3.3 Racks and Cabinets
- 6.3.4 Servers
- 6.3.5 Networking Equipment
- 6.3.6 Physical Security Infrastructure
- 6.3.7 Design and Consulting Services
- 6.3.8 Other Infrastructure
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6.4 End-User
- 6.4.1 IT & Telecommunication
- 6.4.2 BFSI
- 6.4.3 Government
- 6.4.4 Healthcare
- 6.4.5 Other End User
7. COMPETITIVE LANDSCAPE
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7.1 Company Profiles*
- 7.1.1 AECOM
- 7.1.2 NTT Ltd.
- 7.1.3 Fortis Construction
- 7.1.4 IBM Corporation
- 7.1.5 SAS Institute Inc.
- 7.1.6 Schneider Electric SE
- 7.1.7 Turner Construction Co.
- 7.1.8 Archetype Group
- 7.1.9 Delta Group
- 7.1.10 Legrand SA
- 7.1.11 Iris Global
- 7.1.12 Aurecon Group Pty. Ltd.
- 7.1.13 NEC Vietnam Co. Ltd.
- 7.1.14 Dell Inc.
- 7.1.15 Cisco Systems Inc.
8. INVESTMENT ANALYSIS
9. MARKET OPPORTUNITIES AND FUTURE TRENDS
** Subject To AvailablityVietnam Data Center Construction Industry Segmentation
Data center construction combines physical processes used to construct a data center facility. It chains construction standards with data center operational environment requirements.
The Vietnam Data Center Construction Market is segmented by tier type (tier 1 and 2, tier 3, and tier 4), by data center size (small, medium, large, massive, and mega), by infrastructure (cooling infrastructure (air-based cooling, liquid-based cooling, evaporative cooling), power infrastructure (UPS systems, generators, power distribution unit (PDU), racks and cabinets, servers, networking equipment, physical security infrastructure, design and consulting services, and other infrastructure), and by end user ( IT & telecommunication, BFSI, government, healthcare, and other end user). The market sizes and forecasts are provided in values of USD for all the above segments.
| Tier Type | Tier 1 and 2 | |
| Tier 3 | ||
| Tier 4 | ||
| Data Center Size | Small | |
| Medium | ||
| Large | ||
| Mega | ||
| Massive | ||
| Infrastructure | Cooling Infrastructure | Air-based Cooling |
| Liquid-based Cooling | ||
| Evaporative Cooling | ||
| Infrastructure | Power Infrastructure | UPS Systems |
| Generators | ||
| Power Distribution Unit (PDU) | ||
| Infrastructure | Racks and Cabinets | |
| Servers | ||
| Networking Equipment | ||
| Physical Security Infrastructure | ||
| Design and Consulting Services | ||
| Other Infrastructure | ||
| End-User | IT & Telecommunication | |
| BFSI | ||
| Government | ||
| Healthcare | ||
| Other End User |
Vietnam Data Center Construction Market Research Faqs
What is the current Vietnam Data Center Construction Market size?
The Vietnam Data Center Construction Market is projected to register a CAGR of 8.84% during the forecast period (2024-2029)
Who are the key players in Vietnam Data Center Construction Market?
Aurecon, Archetype Group, NEC Vietnam, Dell Technologies and Cisco Systems are the major companies operating in the Vietnam Data Center Construction Market.
What years does this Vietnam Data Center Construction Market cover?
The report covers the Vietnam Data Center Construction Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Vietnam Data Center Construction Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Vietnam Data Center Construction Industry Report
Statistics for the 2024 Vietnam Data Center Construction market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Vietnam Data Center Construction analysis includes a market forecast outlook to for 2024 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
