Vietnam Data Center Power Market Size (2024 - 2029)

Vietnam Data Center Power Market Analysis

The Vietnam Data Center Power Market size is estimated at USD 397.10 million in 2024, and is expected to reach USD 556.30 million by 2029, growing at a CAGR of 6.84% during the forecast period (2024-2029).

The increasing demand for cloud computing among SMEs, government regulations for local data security, and growing investment by domestic players are some of the major factors driving the demand for data centers in the country.

• Under Construction IT Load Capacity: The upcoming IT load capacity of the Vietnamese data center market is expected to reach 240 MW by 2029.
• Under Construction Raised Floor Space: The country’s construction of raised floor area is expected to increase to 870 K sq. ft by 2029.
• Planned Racks: The country’s total number of racks to be installed is expected to reach 43 K units by 2029. NCR Ho Chi Minh City is expected to house the maximum number of racks by 2029.
• Planned Submarine Cables: There are close to 20 submarine cable systems connecting Vietnam, and many are under construction. One such cable, Southeast Asia-Japan Cable 2 (SJC2), is estimated to start service in 2023. It stretches over 10,500 kilometers and has landing points from Quy Nhon, Vietnam.
• An increasing need for data storage has resulted in an upsurge in the number of data centers. The rising usage of data centers increased electricity consumption in Vietnam. The country has made clear progress in increasing competition in electricity and natural gas markets. It has reduced the use of fossil fuels and increased the share of renewable energy.
• Vietnam could become self-sufficient with domestic energy production. The country’s energy production units produce 163 billion KWh of electricity, accounting for 107% of its own consumption. Despite this, Vietnam trades energy to foreign countries. Besides pure consumption, production, imports, and exports also play an important role.
• Electricity consumption in the country is rapidly growing (by more than 8% annually on average), creating a power shortage issue. To reduce energy consumption and resolve power shortage issues, key market players are focusing on introducing efficient power management systems such as PDUs, busways, and UPS to control unnecessary expenditures in data centers, which is expected to drive the market’s growth. For instance, ABB’s technologies guarantee essential power and ensure uninterrupted service in Vietnam’s CMC Creative Space data center, a significant cloud computing infrastructure provider.

Vietnam Data Center Power Industry Segmentation

Data center power refers to the power infrastructure, including electrical components and electrical distribution systems, that provide the power necessary to operate and support the devices and servers within the data center. It includes various components and technologies designed to ensure a reliable, uninterruptible power supply for data center IT equipment, including uninterruptible power supplies (UPS), power distribution units (PDU), backup generators, and other power management solutions tailored to the specific needs of data centers. Data center operators achieve data center redundancy through duplicated components to maintain uninterrupted operations in the event of failure of some components and to maintain uptime during maintenance.

The Vietnamese data center power market is segmented by power infrastructure (electrical solution (UPS system, generators, power distribution solutions [PDU, switchgear, critical power distribution, transfer switches, remote power panels, others], and service) and end user (IT & telecommunication, BFSI, government, media & entertainment, and other end users). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.