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Vietnam Data Center Construction Market Size (2024 - 2029)

The Vietnam data center construction market is experiencing growth driven by increased smartphone usage and internet penetration, which are boosting reliance on cloud, telecom, and e-commerce services. This trend is prompting the need for expanded data center infrastructure. Despite challenges such as environmental concerns, high construction costs, and supply chain disruptions exacerbated by the COVID-19 pandemic, the market is rebounding as demand for data capacity surges, particularly with the shift towards hybrid cloud environments. The focus on developing digital infrastructure and addressing network reliability issues further supports the expansion of the market size.

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Market Size of Vietnam Data Center Construction Industry

Vietnam Data Center Construction Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 0.72 Billion
Market Size (2030) USD 1.22 Billion
CAGR (2024 - 2030) 9.14 %
Market Concentration Medium

Major Players

Vietnam Data Center Construction Market Major Players

*Disclaimer: Major Players sorted in no particular order

Vietnam Data Center Construction Market Analysis

The Vietnam Data Center Construction Market size is estimated at USD 0.72 billion in 2024, and is expected to reach USD 1.22 billion by 2030, growing at a CAGR of 9.14% during the forecast period (2024-2030).

  • Under Construction IT Load Capacity: The upcoming IT load capacity of the Vietnamese data center construction market is expected to reach more than 240 MW in six years.
  • Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase by more than 0.8 million sq. ft in six years.
  • Planned Racks: The country's total number of racks to be installed is expected to reach 43,000 units in six years. Ho Chi Minh City is expected to have the highest number of racks in six years.
  • DC Facilities: Vietnam has 30 colocation data centers, with Ho Chi Minh City as the major hotspot. The growing adoption of the cloud by most businesses is one of the factors boosting the number of data centers in the country.
  • Also, the digital economy and social development are top priorities in most development strategies. Local internet service providers (ISPs) in Vietnam plan to develop a cable network in response to frequent network breakdowns on the Asia America Gateway (AAG) submarine telecommunication cable. Thus, these infrastructure developments are driving the need for a data center in the country.

Vietnam Data Center Construction Industry Segmentation

A data center is a physical room, building, or facility that holds IT infrastructure used to construct, run, and provide applications and services and store and manage the data connected with them. Under data center construction, the capital expenditure incurred while building the existing data center facilities is tracked, and the future capex is estimated based on upcoming data center facilities.

The Vietnamese data center construction market is segmented by infrastructure (electrical infrastructure (power distribution solutions (PDU, transfer switches, switchgear, power panels, and components)), power backup solutions (ups and generators), service - design and consulting, integration, and support and maintenance)), (mechanical infrastructure (cooling systems (immersion cooling, direct-to-chip cooling, rear door heat exchanger, and in-row and in-rack cooling)), racks, and other mechanical infrastructure)), and general construction)), tier type (Tier 1 and 2, Tier 3, and Tier 4), and end user (banking, financial services and insurance, IT and telecommunications, government, defense, healthcare, and other end users). The market size and forecasts are provided in value (USD) for all the above segments.

Market Segmentation - By Infrastructure
Market Segmentation - By Electrical Infrastructure
Power Distribution Solution
PDU - Basic and Smart - Metered and Switched Solutions
Transfer Switches
Static
Automatic (ATS)
Switchgear
Low-voltage
Medium-voltage
Power Panels and Components
Other Power Panels and Components
Power Backup Solutions
UPS
Generators
Service - Design and Consulting, Integration, Support, and Maintenance
Market Segmentation - By Mechanical Infrastructure
Cooling Systems
Immersion Cooling
Direct-to-chip Cooling
Rear Door Heat Exchanger
In-row and In-rack Cooling
Racks
Other Mechanical Infrastructure
General Construction
Market Segmentation - By Tier Type
Tier 1 and 2
Tier 3
Tier 4
Market Segmentation - By End User
Banking, Financial Services, and Insurance
IT and Telecommunications
Government and Defense
Healthcare
Other End Users
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Vietnam Data Center Construction Market Size Summary

The Vietnam data center construction market is experiencing significant growth, driven by the increasing number of smartphone users and the expansion of internet penetration. This surge in digital activity is fueling the demand for cloud, telecom, and e-commerce services, necessitating the construction of more data centers. The Vietnamese government's National Digital Infrastructure Strategy aims to further boost smartphone adoption, which, along with the development of a robust cable network by local internet service providers, is expected to enhance the country's digital infrastructure. Despite challenges such as environmental impacts, high construction costs, and workforce issues, the market presents opportunities for improvement and growth. The COVID-19 pandemic initially slowed down construction due to supply chain disruptions, but post-pandemic, the demand for data capacity has surged, leading to a resurgence in data center construction.

The market is witnessing a shift towards tier 3 data centers, which offer minimal downtime and 24/7 support, catering to the growing online entertainment sector. While tier 4 facilities remain underdeveloped due to infrastructural inefficiencies, the telecom segment is poised for growth with the deployment of 5G networks and initiatives by major companies like Amazon Web Services and VNPT. The market is fairly consolidated, with key players such as Aurecon, Archetype Group, NEC Vietnam, Dell Technologies, and Cisco Systems dominating. Recent developments, including the opening of new data centers by VNG Corporation and the launch of edge data centers by AWS, highlight the ongoing investment in data center infrastructure. These advancements are expected to drive the market forward, aligning with Vietnam's goal of generating significant revenue from its national data infrastructure.

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Vietnam Data Center Construction Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION

    1. 1.1 Market Segmentation - By Infrastructure

      1. 1.1.1 Market Segmentation - By Electrical Infrastructure

        1. 1.1.1.1 Power Distribution Solution

          1. 1.1.1.1.1 PDU - Basic and Smart - Metered and Switched Solutions

          2. 1.1.1.1.2 Transfer Switches

            1. 1.1.1.1.2.1 Static

            2. 1.1.1.1.2.2 Automatic (ATS)

          3. 1.1.1.1.3 Switchgear

            1. 1.1.1.1.3.1 Low-voltage

            2. 1.1.1.1.3.2 Medium-voltage

          4. 1.1.1.1.4 Power Panels and Components

          5. 1.1.1.1.5 Other Power Panels and Components

        2. 1.1.1.2 Power Backup Solutions

          1. 1.1.1.2.1 UPS

          2. 1.1.1.2.2 Generators

        3. 1.1.1.3 Service - Design and Consulting, Integration, Support, and Maintenance

      2. 1.1.2 Market Segmentation - By Mechanical Infrastructure

        1. 1.1.2.1 Cooling Systems

          1. 1.1.2.1.1 Immersion Cooling

          2. 1.1.2.1.2 Direct-to-chip Cooling

          3. 1.1.2.1.3 Rear Door Heat Exchanger

          4. 1.1.2.1.4 In-row and In-rack Cooling

        2. 1.1.2.2 Racks

        3. 1.1.2.3 Other Mechanical Infrastructure

      3. 1.1.3 General Construction

    2. 1.2 Market Segmentation - By Tier Type

      1. 1.2.1 Tier 1 and 2

      2. 1.2.2 Tier 3

      3. 1.2.3 Tier 4

    3. 1.3 Market Segmentation - By End User

      1. 1.3.1 Banking, Financial Services, and Insurance

      2. 1.3.2 IT and Telecommunications

      3. 1.3.3 Government and Defense

      4. 1.3.4 Healthcare

      5. 1.3.5 Other End Users

Vietnam Data Center Construction Market Size FAQs

The Vietnam Data Center Construction Market size is expected to reach USD 0.72 billion in 2024 and grow at a CAGR of 9.14% to reach USD 1.22 billion by 2030.

In 2024, the Vietnam Data Center Construction Market size is expected to reach USD 0.72 billion.

Vietnam Data Center Construction Market Report Snapshots

Vietnam Data Center Construction Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)