Vietnam’s colocation data centre market is growing at a compounded annual growth rate of 11.09 percent and is expected to be worth US$235 million a year by 2029, according to a report from intelligence and advisory firm Arizton. The firm estimates that in the same year there will be a vacancy rate in data centres in Vietnam of just 10 percent.
Of note, Vietnam’s data centre development was given a significant boost last year when a revised Law on Telecommunications was approved. This law effectively opened the market for data centre development to foreign investment by allowing for full foreign ownership of data centres, cloud computing services, and telecommunications OTT services.
That said, data centres need a huge amount of electricity to operate and the power supply needs to be consistent. Vietnam, however, has had some challenges of late with its electricity supply with power shortages and blackouts across northern Vietnam in 2023 costing the economy around US$1.4 billion.
See also: How to Open a Data Centre in Vietnam: Ultimate Guide 2024