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Report Description

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Vietnam Data Center Market By Solution (IT Infrastructure, General Infrastructure, Mechanical Infrastructure and Other Infrastructure), By Type (Corporate and Web Hosting), By End User Industry (IT & Telecom, BFSI, Government and Healthcare), By Region, Competition Forecast & Opportunities, 2028

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Vietnam Data Center Market is anticipated to register a steady CAGR during the forecast period of 2024-2028. The increasing number of data centers as a result of increased government and major company investment in IT infrastructure, as well as the fast movement of businesses to a cloud environment, are driving the expansion of the data center industry in Vietnam. Furthermore, increased 5G penetration and adoption of new technologies including  AI, IoT, machine learning, big data, and so on are moving the data center industry forward. However, the high risks of hacking and cybersecurity concerns may function as a significant impediment to market growth. Telecom companies, followed by colocation operators, dominate the Vietnam data center market. Furthermore, new investors such as Data Center First and Edge Centres are entering the Vietnam data center industry with plans to establish data centerss in the nation. The Vietnamese government has worked tirelessly to strengthen the country's digital economy. According to the Chairman of the Vietnam Digital Communication Association (VDCA), the digital economy will account for around 20% of Vietnam's overall GDP by 2025.

USDC Technology, a key player in the Vietnam Data Center market, has collaborated with Huawei Vietnam to offer customers a next-generation modular data center solution that includes complete integration of cabinets, power supply, distribution systems, cooling systems, cabling systems, management software, and much more.

The Vietnam data center market is predicted to develop significantly over the forecast period, leading to an increase in data center complexity because of scalability. Furthermore, the rise in businesses’ use of high-end cloud computing in developing regions promotes the development of the data center market of Vietnam throughout the forecast period. Furthermore, increased investment in data center applications is likely to drive market growth.

Increasing Modular Data Center Design & Deployment

The continuous growth of a data center facility's design and engineering by major operators and architectural and engineering companies will result in several breakthroughs in the construction and operation of a data center. Modular data center construction addresses issues such as high PUE, high running expenses of traditional data center, and significant environmental impact. Modular data center deployment, which uses a templated plug-and-play technique to assemble modules, simplifies requirement collection for each material type, resulting in very little or no waste. As a result, the Vietnam Data Center market is anticipated to grow quickly throughout the course of the projected period.

Cloud Adoption is Driving Demand for Data Center

The edge cloud is a new approach of establishing cloud data centers at several places closer to consumers, which is being aided by the increased deployment of modular data centers. Cloud edge computing capabilities are being pursued by major cloud service providers such as Google, Amazon Web Services (AWS), and Microsoft Azure. Big data and IoT are driving the modular data center market because modular systems provide flexibility to enable HPC technologies such as IoT and big data. Moreover, the demand for modular data center is anticipated to rise significantly over the course of the projected period. The rise in data privacy concerns, along with rising demand for managed services, is serving as a key barrier to early adoption, impeding industry expansion. On the contrary, an increase in datacenter technology spending as well as increased use of multi-cloud and network upgrades to enable 5G technology are expected to give lucrative prospects for datacenter market development over the forecast period.