Data Centers in Vietnam

Vietnam – Southeast Asia's Emerging Digital Hub

Vietnam is a strategic market for enterprises and service providers targeting one of the fastest-growing digital economies in Southeast Asia. Its combination of a large, young population and competitive operational costs makes it a prime location for deploying infrastructure to serve the local market and the greater Indochina region. This market ensures low-latency access to millions of end-users, directly impacting service delivery and revenue.

Vietnam: At A Glance

Network & Connectivity Ecosystem

Vietnam's connectivity landscape is rapidly maturing, driven by massive growth in digital services and data consumption. The ecosystem is expanding to meet the demands of a mobile-first population.

Carrier Density & Carrier Neutrality: The market includes at least 6 major providers as of September 2025, with several carrier-neutral facilities available in Ho Chi Minh City and Hanoi. This provides foundational options for network redundancy and resilience.

Direct Cloud On-Ramps: Over 1 on-ramp enables direct, private access to 1 cloud region as of September 2025. This includes dedicated interconnection to Alibaba Cloud, allowing businesses to create hybrid architectures with predictable performance.

Internet Exchange Points (IXPs): The Vietnam National Internet Exchange (VNIX) is the primary peering point, facilitating efficient traffic exchange between local internet service providers and content networks. Most large-scale peering occurs privately within key data centers.

Bare Metal: Bare metal server options are available, primarily through colocation providers offering dedicated hardware solutions. Providers like Hivelocity and Leaseweb can be accessed through local data center partners.

Power Analysis

Average Cost Of Power: Power costs range from approximately US$0.07 to US$0.10/kWh as of September 2025. This competitive pricing structure is a significant advantage for managing operational expenses, especially for high-density computing workloads.

Power Grid Reliability: In the main economic centers of Ho Chi Minh City and Hanoi, the power grid is stable and suitable for mission-critical operations. Data centers in these areas are well-engineered with multi-substation support and N+1 or greater redundancy in their power delivery systems.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers are strategically located near the central business districts and industrial parks of Ho Chi Minh City and Hanoi. This proximity provides low-latency connectivity to the nation's financial, e-commerce, manufacturing, and technology sectors.

Regional Market Reach: From Vietnam, businesses can effectively serve a domestic market of over 100 million people. It also acts as a strategic gateway for delivering digital services to neighboring markets in Cambodia and Laos.

Tax Advantage For Data Centers: Vietnam does not offer specific tax incentives tailored for data center investment or operations. The country's standard corporate tax regulations apply, providing a clear and predictable financial framework for businesses.

Natural Disaster Risk

Vietnam has a Moderate overall disaster risk profile, with a score of 4 out of 10 as of September 2025. Due to its extensive coastline and complex river systems, the country's primary risks are climate and weather-related.

Key natural hazards include:

• River Flood: Very high risk.
• Coastal Flood: Very high risk.
• Tropical Cyclone: High risk.
• Tsunami: High risk.

Facility site selection and robust building standards are critical for mitigating these environmental threats. Data centers are typically built to withstand regional weather events.