Vietnam Data Center Cooling Market Market Size (2024 - 2029)

The Vietnam data center cooling market is experiencing growth driven by the need to address challenges posed by the country's climate, which includes extreme weather events that threaten infrastructure. This demand is further fueled by the anticipated increase in IT load capacity and the expansion of construction projects, such as raised floor areas and the installation of racks. The market's expansion is also supported by the development of submarine cable systems, enhancing connectivity and data handling capabilities.

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Market Size of Vietnam Data Center Cooling Industry

Vietnam Data Center Cooling Market Summary
Study Period 2019 - 2030
Base Year For Estimation 2023
Forecast Data Period 2024 - 2030
Historical Data Period 2019 - 2022
CAGR (2024 - 2030) 8.60 %
Market Concentration High

Major Players

Vietnam Data Center Cooling Market Major Players

*Disclaimer: Major Players sorted in no particular order

Vietnam Data Center Cooling Market Analysis

The Vietnam Data Center Cooling Market is expected to register a CAGR of 8.60% during the forecast period.

The Vietnam data center cooling market reached a value of USD 55.9 million in the previous year, and it is further projected to register a CAGR of 8.6% during the forecast period.

  • In Vietnam, the mean annual temperatures are around 24 to 25 °C, in which the coldest month has a mean temperature of 17 to 20 °C and the hottest month has a mean temperature of 29 to 30 °C.
  • Extreme weather events are a threat to physical infrastructure such as power stations, electricity cables, and the data center buildings themselves. The above factor drives the major demand for data center cooling solutions.
  • The upcoming IT load capacity of the Vietnam data center market is expected to reach around 230 MW by 2029. The country's construction of raised floor area is expected to increase to 877.5 thousand sq. ft by 2029.
  • The country's total number of racks to be installed is expected to reach 43.9K units by 2029. Ho Chi Minh City is expected to house the maximum number of racks by 2029.
  • There are close to 7 submarine cable systems connecting Vietnam, and many are under construction. One such submarine cable that is estimated to start service in 2023 is Southeast Asia-Japan Cable 2 (SJC2), which stretches over 10,500 km with landing points from Quy Nhon, Vietnam.

Vietnam Data Center Cooling Industry Segmentation

Data center cooling is a set of techniques and technologies to maintain optimal operating temperatures in data center environments. Data center cooling is critical as data center facilities house many computer servers and network equipment that generate heat during operation. Efficient cooling systems are used to dissipate this heat and prevent equipment from overheating, ensuring continued reliable operation of the data center. Various methods, such as air conditioning, liquid cooling, and hot/cold aisle containment, are commonly used to control temperature and humidity in data centers.

The Vietnam data center cooling market is segmented by cooling technology type (air-based cooling, liquid-based cooling, and evaporative cooling) and by end-user (IT & telecommunication, BFSI, government, media & entertainment, and other end-users).

The market sizes and forecasts are provided in terms of value (USD) for all the above segments.

Cooling Technology
Air-based Cooling
Liquid-based Cooling
Evaporative Cooling
End-User
IT & Telecommunication
BFSI
Government
Media & Entertainment
Other End-Users
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Vietnam Data Center Cooling Market Size Summary

The Vietnam data center cooling market is experiencing significant growth, driven by the increasing demand for efficient cooling solutions due to rising temperatures and the expansion of data center infrastructure. The country's mean annual temperatures and extreme weather events necessitate robust cooling systems to protect data center operations. The market is further bolstered by the implementation of data localization laws, which have spurred investments from both local and international companies. This regulatory environment, coupled with the growth of the telecommunications sector and the deployment of 5G networks, is fostering a surge in data center construction and the associated cooling solutions. Major players in the market, such as Mitsubishi Electric Corporation, Schneider Electric SE, and Huawei Technologies Co., Ltd., are leveraging strategic collaborations to enhance their market presence and profitability.

The demand for data center cooling solutions in Vietnam is also influenced by the country's digital transformation initiatives and the need for high-bandwidth networking infrastructure. The government's Digital Transformation Program 2025 aims to transition a significant portion of business operations to digital platforms, further driving the need for data storage and cooling solutions. Additionally, the expansion of submarine cable systems and the development of edge data centers are enhancing network connectivity, which is crucial for supporting the growing digital economy. The market is characterized by innovation, with companies like STULZ and OVHcloud introducing advanced cooling technologies that offer environmental and operational benefits. As the market continues to evolve, the focus on sustainable and efficient cooling solutions remains a key priority for industry players.

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Vietnam Data Center Cooling Market Market Size - Table of Contents

  1. 1. Market Dynamics

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Increasing Volume of Digital Data and Fiber Deployment

      2. 1.2.2 Emergence of Green Data Centers

    3. 1.3 Market Restraints

      1. 1.3.1 Adaptability Requirements and Power Outages

    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 Cooling Technology

      1. 2.1.1 Air-based Cooling

      2. 2.1.2 Liquid-based Cooling

      3. 2.1.3 Evaporative Cooling

    2. 2.2 End-User

      1. 2.2.1 IT & Telecommunication

      2. 2.2.2 BFSI

      3. 2.2.3 Government

      4. 2.2.4 Media & Entertainment

      5. 2.2.5 Other End-Users

Vietnam Data Center Cooling Market Market Size FAQs

The Vietnam Data Center Cooling Market is projected to register a CAGR of 8.60% during the forecast period (2024-2030)

Mitsubishi Electric Corporation, Schneider Electric SE, Huawei Technologies Co., Ltd., STULZ GMBH and Johnson Controls International PLC (York International) are the major companies operating in the Vietnam Data Center Cooling Market.

Vietnam Data Center Cooling Market Report Snapshots

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