Data centers in Vietnam are seeing an increase as the economy improves and more businesses adopt technology to simplify their operations. But the sector is still just beginning to develop and infrastructure has to increase its capacity quickly to meet the demand. It’s also critical for providers to ensure stable energy supply and have an understanding of the country’s complicated regulatory landscape.
The country had strict regulations regarding foreign ownership of cloud and data businesses until last week. The new Law on Telecommunications has eliminated the cap of 49% for foreign ownership. This allows foreign investors to control all cloud and data businesses. This is a great change for the industry as it is likely to encourage foreign investment and increase the capabilities of the country’s tech industry.
Google is one of the companies that is taking advantage of this policy shift. A source close to the plans has revealed that Google is looking into a “hyperscaled” data center in Ho Chi Minh City. The source did not disclose the amount of the investment. It could be a major boost to the industry of data centers in Vietnam. It would mark the first time a large U.S. technology company has invested in Vietnam, given that large data centers typically prefer to have their facilities in countries that are not as affluent due to security concerns and the high operating costs.
Alibaba the Chinese company, is also building data centers in Vietnam. This is to ensure compliance with local laws that require companies to keep local information. It currently uses data centers operated by telecommunications firms Viettel and VNPT to meet the requirement.
Ho Chi Minh City, Hanoi and other cities are becoming hubs for cloud service providers. Numerous international operators, including NTT Global Data Centers, Edge Centres and STT Global Data Centers have invested significant amounts in the region.
With its huge workforce, competitive pricing management efficiency enhanced by tech applications when compared to other countries, and its supportive government policies, Vietnam is a good option for businesses seeking to invest in data centers. However, as the market expands and expands, it is essential that companies be aware of the risks and benefits of this lucrative business to maximize their profits.
Data centers use a lot of energy, and in order to meet the increasing demand, it’s crucial that providers have the appropriate infrastructure in place. This includes ensuring a stable and reliable power source, ensuring the data storage environment is secure, as well as providing secure connections. Although these issues can be overcome with the proper planning and execution, they must be evaluated carefully against the potential benefits of investing in this booming business. In Vietnam, for example the cost to build the data center of 50 megawatts could range from $300 million up to $650 million. This amount of money is a significant portion of any company’s IT budget and it’s crucial to weigh the advantages and disadvantages of investing before making a decision. If you need assistance with your project to build a data center, contact us for more details.