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.