Vietnam Data Center Construction Market Size (2024 - 2029)

The Vietnam data center construction market is experiencing growth driven by increased smartphone usage and internet penetration, which are boosting reliance on cloud, telecom, and e-commerce services. This trend is prompting the need for expanded data center infrastructure. Despite challenges such as environmental concerns, high construction costs, and supply chain disruptions exacerbated by the COVID-19 pandemic, the market is rebounding as demand for data capacity surges, particularly with the shift towards hybrid cloud environments. The focus on developing digital infrastructure and addressing network reliability issues further supports the expansion of the market size.

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Market Size of Vietnam Data Center Construction Industry

Vietnam Data Center Construction Market Summary
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

Vietnam Data Center Construction Market Major Players

*Disclaimer: Major Players sorted in no particular order

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 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
Power Infrastructure
UPS Systems
Generators
Power Distribution Unit (PDU)
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
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Vietnam Data Center Construction Market Size Summary

The Vietnam data center construction market is experiencing significant growth, driven by the increasing number of smartphone users and the expansion of internet penetration. This surge in digital activity is fueling the demand for cloud, telecom, and e-commerce services, necessitating the construction of more data centers. The Vietnamese government's National Digital Infrastructure Strategy aims to further boost smartphone adoption, which, along with the development of a robust cable network by local internet service providers, is expected to enhance the country's digital infrastructure. Despite challenges such as environmental impacts, high construction costs, and workforce issues, the market presents opportunities for improvement and growth. The COVID-19 pandemic initially slowed down construction due to supply chain disruptions, but post-pandemic, the demand for data capacity has surged, leading to a resurgence in data center construction.

The market is witnessing a shift towards tier 3 data centers, which offer minimal downtime and 24/7 support, catering to the growing online entertainment sector. While tier 4 facilities remain underdeveloped due to infrastructural inefficiencies, the telecom segment is poised for growth with the deployment of 5G networks and initiatives by major companies like Amazon Web Services and VNPT. The market is fairly consolidated, with key players such as Aurecon, Archetype Group, NEC Vietnam, Dell Technologies, and Cisco Systems dominating. Recent developments, including the opening of new data centers by VNG Corporation and the launch of edge data centers by AWS, highlight the ongoing investment in data center infrastructure. These advancements are expected to drive the market forward, aligning with Vietnam's goal of generating significant revenue from its national data infrastructure.

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Vietnam Data Center Construction Market Size - Table of Contents

  1. 1. Market Dynamics

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Increased Migration to Cloud-based Business Operations

      2. 1.2.2 Rise of Green Data Centers

      3. 1.2.3 Government Support in the Form of Tax Incentives for Development of Data Centers

    3. 1.3 Market Restraints

      1. 1.3.1 Higher Initial Investments and Low Availability of Resources

    4. 1.4 Value Chain / Supply Chain Analysis

    5. 1.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.5.1 Threat of New Entrants

      2. 1.5.2 Bargaining Power of Buyers/Consumers

      3. 1.5.3 Bargaining Power of Suppliers

      4. 1.5.4 Threat of Substitute Products

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Assessment of COVID-19 Impact

  2. 2. MARKET SEGMENTATION

    1. 2.1 Tier Type

      1. 2.1.1 Tier 1 and 2

      2. 2.1.2 Tier 3

      3. 2.1.3 Tier 4

    2. 2.2 Data Center Size

      1. 2.2.1 Small

      2. 2.2.2 Medium

      3. 2.2.3 Large

      4. 2.2.4 Mega

      5. 2.2.5 Massive

    3. 2.3 Infrastructure

      1. 2.3.1 Cooling Infrastructure

        1. 2.3.1.1 Air-based Cooling

        2. 2.3.1.2 Liquid-based Cooling

        3. 2.3.1.3 Evaporative Cooling

      2. 2.3.2 Power Infrastructure

        1. 2.3.2.1 UPS Systems

        2. 2.3.2.2 Generators

        3. 2.3.2.3 Power Distribution Unit (PDU)

      3. 2.3.3 Racks and Cabinets

      4. 2.3.4 Servers

      5. 2.3.5 Networking Equipment

      6. 2.3.6 Physical Security Infrastructure

      7. 2.3.7 Design and Consulting Services

      8. 2.3.8 Other Infrastructure

    4. 2.4 End-User

      1. 2.4.1 IT & Telecommunication

      2. 2.4.2 BFSI

      3. 2.4.3 Government

      4. 2.4.4 Healthcare

      5. 2.4.5 Other End User

Vietnam Data Center Construction Market Size FAQs

The Vietnam Data Center Construction Market is projected to register a CAGR of 8.84% during the forecast period (2024-2029)

Aurecon, Archetype Group, NEC Vietnam, Dell Technologies and Cisco Systems are the major companies operating in the Vietnam Data Center Construction Market.

Vietnam Data Center Construction Market Report Snapshots

Vietnam Data Center Construction Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2030)