Vietnam has emerged as one of Asia Pacific’s most attractive new data centre markets, recording a yield on cost of 17.5 to 18.8 percent — second only to Singapore — according to Cushman & Wakefield’s latest Asia Pacific Data Centre Investment Landscape report→view source.
Key points:
- Low build costs: Average development cost per MW in Vietnam is US$7.1 million, far below the regional average of US$10.1 million and nearly half that of Japan.
- High cap rate: Current cap rate sits at 7 to 8 percent, above the regional average of 5.8 percent, offering a stronger risk premium.
- Capacity shortfall: Vietnam serves 1.77 million people per MW, among the highest in Asia Pacific, and even with planned expansions will still have a high density of 692,563 people per MW by 2030.
- Growth potential: Vietnam’s GDP remains below US$1 trillion but its rapid growth points to strong future demand; smaller economies account for just 5 percent of regional data centre capacity despite representing 7 percent of GDP.
- Policy reforms: New regulations allow foreign investors full ownership of data centres and land, underlining government support for the sector as “high-priority technology.”
See also: How to Open a Data Centre in Vietnam 2025: Ownership, Location & Regulations