Market Trends of Vietnam Data Center Power Industry
IT & Telecommunication Segment Holds Major Share in the Market
- Following the global trend of cloud technology, the interest of Vietnamese companies and their demand for cloud services are also increasing. Service provider opportunities in IT services include IT technical training and IT consulting, management, software/enterprise applications (ERP and CRM systems, financial and accounting software), data centers and data storage, and web services.
- The country’s data center market is driven by the migration of enterprise data to cloud platforms. For instance, in December 2022, Vietnamese conglomerate Vingroup announced its plans to migrate its SAP systems, including supply chain management, enterprise resource planning (ERP), finance management, human capital management (HCM), and manufacturing operations, in its on-premise data centers to Google Cloud to boost its production capabilities and improve product and service quality. Such developments are expected to increase the adoption of data storage solutions and positively impact the market.
- The telecom segment also witnessed significant growth of 5.48%. Many telecom operators aim to increase their offerings and expand their presence nationwide amid the growing economy and the increasing number of internet users. For instance, Viettel IDC plans to invest in 4G and 5G infrastructure and fiber optic connectivity for every household by 2025.
- In 2022, the launch of the 5G network and Viettel revolutionized the country’s digital market. Vietnam has plans to increase its share of the digital economy’s gross domestic product (GDP) to 20% by 2025. Vietnam enjoys 99.8% 4G coverage nationwide, with three major carriers, Viettel, VNPT, and MobiFone, successfully piloting 5G technology in 16 cities and provinces. Such developments are expected to increase the adoption of data storage solutions and positively impact the market’s growth.
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Monitored PDUs Hold Significant Share in the Market
- The increasing focus on digitalization, internet penetration (reached 79.1% by the start of 2023 from 73.2% during the same period in 2022), and e-commerce sales across the country create more need for storage facilities, resulting in huge demand for data centers and a rise in power consumption. Growing demand for data storage has led to the deployment of intelligent power distribution units (PDUs) against simple multi-socket rack installations with server and network equipment, which optimize power consumption in data centers.
- Monitored rack PDUs are essential components in data center and server room infrastructure, providing real-time monitoring of power usage, voltage, current, and other electrical parameters. This data helps administrators make informed decisions about power allocation and capacity planning.
- By tracking power usage trends, administrators can plan for future growth and ensure that power capacity is not exceeded, preventing overloads that could lead to equipment failures. It also helps identify inefficiencies and optimize energy usage. This can lead to cost savings and a reduced environmental footprint by eliminating unnecessary power consumption. It allows administrators to have remote access and control, reducing the need for physical presence and minimizing operational disruptions.
- Furthermore, Vietnam aims at a 10% yearly increase in energy demand, and improving power generation efficiency is one of its main priorities. By 2030, the Vietnam Energy Efficiency Program (VNEEP 3) expects to save 10% of national energy consumption and reduce power loss by 6.0%. The US firms are playing an important role in providing many energy-saving solutions that Vietnam needs. With the US industry as a partner, Vietnam can guarantee its energy security and create a sustainable industrial sector driven by an efficient, digital-enabled, smart power that underpins development.
- Because of the above advancements mentioned with monitored PDUs and the necessity to reduce electricity consumption as per government measures in the country, key players were focusing on introducing energy-efficient products into the market. In May 2023, Eaton, which provides the power management service, launched G3 Universal Input Rack PPDUs with dynamic C39 outlets capable of accommodating different plug configurations and input voltage requirements. To meet the most diverse data center rack power requirements, G3UPDU has added new features.
- In May 2023, Legrand, a significant global provider of electrical and digital building infrastructures, introduced the next generation of intelligent rack PDUs PRO4X and Raritan PX4. These new intelligent rack PDU designs revolutionize capacity planning, environmental monitoring, physical and digital access control, workload optimization, and uptime initiatives. Such developments in the segment are predicted to boost regional demand over the forecast period.
