Vietnam Internet Data Center: New regional IDC Hub

15 April 2024 - 04:00 PM Alternate Text

Vietnam is poised to emerge as the next regional Internet Data Center (IDC) hub thanks to the robust investment flow in the IDC market in Vietnam. Despite Vietnam's modest total IT load capacity of 106 MW in 2023, in comparison to major countries like Japan, Singapore, and Hong Kong, there is significant potential for IDC growth in Vietnam in the near future.

By 2027, the total IT load capacity in Vietnam is forecasted to double up, achieving the CAGR 2023-2027E at 22%. Its solid growth momentum is driven by both continuous investment from the local private sector and the new participation of the foreign sector.

Currently, the government is actively promoting digitalization in the banking sector and government entities through various incentives, driving demand for IDC services in the BFSI and Government sectors. In the upcoming period, Cloud migration and digitalization trends are the key drivers of the IDC market, which will facilitate IDC demand in Vietnam.

Local private players dominate Vietnam’s IDC market, while the foreign sector starts to tab on the industry via notable projects in the time to come. Partnering with local firms is seen as the most effective market entry strategy for foreign investors, facilitating access to land, customer base, and cost optimization through collaboration with internet service providers.

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