Vietnam Data Center Market Size

The Vietnam Data Center Market is experiencing growth, with a notable expansion in its capacity and revenue over the forecast period. The market's expansion is driven by increased demand for data center facilities that offer uninterrupted business services, particularly tier 3 data centers, which are becoming a priority for global companies. This shift is due to the rising need for robust data center infrastructure to support online entertainment and other internet-dependent activities, which are gaining traction across Vietnam. Despite the nascent stage of tier 4 facilities due to infrastructural challenges, the market is poised for growth, presenting lucrative opportunities for investment and development in data center infrastructure and technology.

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Market Size of vietnam data center Industry

Vietnam Data Center Market Summary
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svg icon Study Period 2017 - 2029
svg icon Market Volume (2024) 169.8 MW
svg icon Market Volume (2029) 242.4 MW
svg icon Largest Share by Tier Type Tier 3
svg icon CAGR (2024 - 2029) 7.38 %
svg icon Fastest Growing by Tier Type Tier 4

Major Players

Vietnam Data Center Market Major Players

*Disclaimer: Major Players sorted in no particular order

Key Players

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Vietnam Data Center Market Analysis

The Vietnam Data Center Market size is estimated at 169.8 MW in 2024, and is expected to reach 242.4 MW by 2029, growing at a CAGR of 7.38%. Further, the market is expected to generate colocation revenue of USD 953.3 Million in 2024 and is projected to reach USD 1,308.4 Million by 2029, growing at a CAGR of 6.54% during the forecast period (2024-2029).

USD 953.34 Million

Market Size in 2024

USD 1308.4 Million

Market Size in 2029

5.2%

CAGR (2016-2021)

6.6%

CAGR (2022-2029)

IT Load Capacity

169.8 MW

Value, IT Load Capacity, 2024

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The growth of cloud computing, increased penetration of foreign cloud vendors, government regulations on local data security, and increased investment by domestic players are some of the factors expected to create need of data centers.

Total Raised Floor Space

Sq. Ft. 0.63 M

Volume, Raised Floor Space, 2024

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The total raised floor area of the country is expected to reach 0.87 million sq. ft by 2029. VNPT and Gaw Capital are some of the upcoming hyperscale facilities with IT load capacities of 10 MW and 20 MW, respectively.

Installed Racks

31,969

Volume, Installed Racks, 2024

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The total number of installed racks is expected to reach 43,875 units by 2029. Ho Chi Minh City is expected to house the maximum number of racks in the coming years.

# of DC Operators & DC Facilities

18 and 32

Volume, DC Facilities, 2024

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The data centers in the region are majorly tier 3 facilities with a gradual inclination toward tier 4 DC standards. This transformation will improve the DC performance and reduce the downtime of facilities.

Leading Market Player

25.2%

Market Share, FPT Telecom Joint Stock Company, 2023

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FPT Telecom Joint Stock Company is the leading player in the Vietnamese market. It is projected to continue its leadership. It provides over 30,000 dedicated servers across popular brands, such as Dell, HP, and IBM.

Tier 3 data centers accounts for majority market share in 2023, Tier-4 is the fastest growing in forecasted period

  • 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 119.56 MW in 2022. It is expected to register a CAGR of 2.23% to reach 139.56 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.
  • In 2021, 22% of people were estimated to use the internet for more than 9 hours a day for studying, entertainment, and shopping, with the majority on their smartphones. 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.
Vietnam Data Center Market

Vietnam Data Center Industry Segmentation

Hanoi, Ho Chi Minh City, Others are covered as segments by Hotspot. Large, Massive, Medium, Mega, Small are covered as segments by Data Center Size. Tier 1 and 2, Tier 3, Tier 4 are covered as segments by Tier Type. Non-Utilized, Utilized are covered as segments by Absorption.

  • 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 119.56 MW in 2022. It is expected to register a CAGR of 2.23% to reach 139.56 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.
  • In 2021, 22% of people were estimated to use the internet for more than 9 hours a day for studying, entertainment, and shopping, with the majority on their smartphones. 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.
Hotspot
Hanoi
Ho Chi Minh City
Others
Rest of Vietnam
Data Center Size
Large
Massive
Medium
Mega
Small
Tier Type
Tier 1 and 2
Tier 3
Tier 4
Absorption
Non-Utilized
Utilized
By Colocation Type
Hyperscale
Retail
Wholesale
By End User
BFSI
Cloud
E-Commerce
Government
Manufacturing
Media & Entertainment
Telecom
Other End User
Others
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Vietnam Data Center Market Size Summary

The Vietnam data center market is experiencing significant growth, driven by the increasing demand for robust digital infrastructure and the rapid adoption of internet and smartphone technologies. The market is evolving with a shift towards tier 3 data centers, which offer enhanced business continuity services, catering to the needs of global companies and the burgeoning online entertainment sector. The expansion of 4G and the upcoming deployment of 5G technology are expected to further boost the market, enhancing network connectivity and supporting the growing number of internet users in the country. The government's National Digital Infrastructure Strategy aims to increase smartphone penetration and digital economy contribution, fostering a conducive environment for data center growth.

Investment in data center infrastructure and technological advancements is creating lucrative opportunities in the Vietnamese market. The market is moderately consolidated, with major players like CMC Telecom, DTS Communication, Telehouse, VNG Cloud, and VNPT Online holding significant shares. The government's initiatives to enhance digital connectivity and the strategic partnerships among telecom operators are expected to drive the market forward. As Vietnam continues to expand its digital landscape, the data center market is poised for substantial growth, supported by increasing consumer spending and the government's focus on digital transformation.

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Vietnam Data Center Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION (INCLUDES MARKET SIZE IN VOLUME, FORECASTS UP TO 2029 AND ANALYSIS OF GROWTH PROSPECTS)

    1. 1.1 Hotspot

      1. 1.1.1 Hanoi

      2. 1.1.2 Ho Chi Minh City

      3. 1.1.3 Others

      4. 1.1.4 Rest of Vietnam

    2. 1.2 Data Center Size

      1. 1.2.1 Large

      2. 1.2.2 Massive

      3. 1.2.3 Medium

      4. 1.2.4 Mega

      5. 1.2.5 Small

    3. 1.3 Tier Type

      1. 1.3.1 Tier 1 and 2

      2. 1.3.2 Tier 3

      3. 1.3.3 Tier 4

    4. 1.4 Absorption

      1. 1.4.1 Non-Utilized

      2. 1.4.2 Utilized

        1. 1.4.2.1 By Colocation Type

          1. 1.4.2.1.1 Hyperscale

          2. 1.4.2.1.2 Retail

          3. 1.4.2.1.3 Wholesale

        2. 1.4.2.2 By End User

          1. 1.4.2.2.1 BFSI

          2. 1.4.2.2.2 Cloud

          3. 1.4.2.2.3 E-Commerce

          4. 1.4.2.2.4 Government

          5. 1.4.2.2.5 Manufacturing

          6. 1.4.2.2.6 Media & Entertainment

          7. 1.4.2.2.7 Telecom

          8. 1.4.2.2.8 Other End User

          9. 1.4.2.2.9 Others

Vietnam Data Center Market Size FAQs

The Vietnam Data Center Market is projected to register a CAGR of 7.38% during the forecast period (2024-2029).

CMC Telecom, DTS Communication, Telehouse (KDDI Corporation), VNG Cloud and VNPT Online are the major companies operating in the Vietnam Data Center Market.

Vietnam Data Center Market Report Snapshots

Vietnam Data Center Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2029