HANOI: Foreign and domestic companies are eyeing the development of data centres in Vietnam, as demand for data storage in the country increases.
In December, VNG Company put into operation a new and international standard data centre called VNG Data Centre in Ho Chi Minh City. It has an initial 410 server racks and will expand to 1,600 racks.
Earlier, in October, Viettel also launched the Viettel Cloud ecosystem with 13 centres and more than 9,000 racks, and over 60,000 square metres of floor area, the largest data centre infrastructure in Vietnam.
The group announced that it would invest another 10 trillion Vietnamese dong (US$424.4mil or RM1.87bil) in Viettel Cloud to expand its scale to 17,000 racks by 2025.
Last August, CMC Corporation inaugurated an international standard data centre with a scale of 1,200 racks on an area of 13,000 square metres in Ho Chi Minh, and an investment of 1.5 trillion Vietnamese dong (RM280mil).
Well-known foreign enterprises are also building data centres in Vietnam.
Last March, Quang Dung Technology Distribution Joint Stock Company, under Greenfeed Vietnam Corp, and NTT Global Data Centres Company, under Japan’s NTT Group, started the construction of a Tier-III centre in Ho Chi Minh, which is expected to come into operation in 2024.
Huy Nguyen, co-founder and chief executive officer of KardiaChain and former senior technical director of Google, told Tuoi Tre newspaper that it was no coincidence that many businesses invest in data centres because the revenue generated would be substantial.
He said the company is currently using the services of a Vietnamese business at a cost of up to US$50,000 (RM220,000) per month.
According to ResearchAndMarkets, the world’s leading market research firm, Vietnam was one of the top-10 emerging markets for global data centres in 2021.
The value of the Vietnamese data centre market stood at US$858mil (RM3.78bil) in 2020 and is forecast to grow at a compounded annual growth rate of nearly 15% until 2026.
The growth of the Vietnamese data centre market is impressive, with international standard service delivery capacity and a large number of organisations and enterprises, according to ResearchAndMarkets.
“The country now has nearly 30 data centres, with more than 46% based in the northern region, 35% in the southern region and 18% in the central districts,” said ResearchAndMarkets.
This disparity in measurement is due to the fact that large data centres are primarily located in ministries and branches in the north.
Domestic companies expect a data centre system made in Vietnam will contribute significantly to the country’s digital economy.
Tao Duc Thang, chairman and director general of Viettel Group, said it set a target that each Vietnamese citizen, household, organisation and enterprise would have a cloud-based data store located in Vietnam – researched, developed and operated by Vietnamese engineers. — Viet Nam News/ANN