Data Centers in Vietnam

Vietnam – Southeast Asia's Emerging Digital Hub

Executive Summary

Vietnam is rapidly emerging as a strategic data center location for businesses targeting Southeast Asia's fast-growing digital economy. Its improving connectivity and competitive operational costs provide a solid foundation for deploying infrastructure that can scale with regional demand, directly impacting application performance and market reach.

Vietnam: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality The market includes over 6 carriers as of September 2025. While the ecosystem is smaller than established hubs, the presence of 14 data centers ensures a range of colocation options and growing carrier neutrality.

Direct Cloud On-Ramps Over 1 on-ramp provides direct, low-latency connectivity to 1 cloud region as of September 2025. Local access is available for Alibaba Cloud, allowing hybrid deployments to connect seamlessly.

Internet Exchange Points (IXPs) The Vietnam Internet Network Information Center (VNNIC) operates the national IXP (VNIX). VNIX is critical for efficient traffic exchange between local internet service providers and content networks within the country.

Bare Metal Bare metal server solutions are available for workloads that demand dedicated, high-performance hardware. Providers such as Leasebeweb offer services in the region, supporting custom infrastructure deployments.

Power Analysis

Average Cost Of Power Industrial power costs in Vietnam range from approximately $0.07 to $0.10/kWh as of September 2025. This competitive pricing structure significantly reduces the total cost of ownership for high-density compute and storage infrastructure.

Power Grid Reliability The power grid in primary business centers like Ho Chi Minh City and Hanoi is well-engineered for commercial operations. Modern data centers are supported by redundant power feeds, on-site backup generators, and UPS systems to guarantee high levels of uptime.

Market Access, Business & Tax Climate

Proximity To Key Business Districts Data centers are strategically located near Ho Chi Minh City and Hanoi, the country's primary economic engines. This proximity ensures low-latency performance for the nation's finance, manufacturing, and rapidly expanding e-commerce sectors.

Regional Market Reach Vietnam's location offers an effective base for serving high-growth markets across Southeast Asia. It provides a strategic point of presence for reaching users and business partners in Cambodia, Laos, and Thailand.

Tax Advantage For Data Centers The market currently offers no specific tax incentives for data center investment or operation. The primary financial advantage stems from competitive operational expenditures, particularly for power and skilled labor.

Natural Disaster Risk

The overall natural disaster risk for Vietnam is rated as moderate (4.0 out of 10), as of September 2025. Careful site selection is essential to mitigate potential environmental threats.

Key risks for infrastructure include:

• River Flooding (9.9/10)
• Coastal Flooding (9.6/10)
• Tropical Cyclones (5.9/10)
• Tsunami (5.9/10)

Modern data centers in the region are engineered to withstand these challenges, often located in elevated zones with specific protections against water ingress and high winds.