Data Centers in Vietnam

Vietnam – Emerging Digital Hub of Southeast Asia

Executive Summary

Vietnam is a critical market for businesses targeting Southeast Asia's rapidly expanding digital economy. Its developing data center ecosystem offers a strategic advantage for delivering low-latency services to millions of consumers and enterprises in the Indochina peninsula. Establishing a presence here is key to capturing growth in this high-potential region.

Vietnam: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: Vietnam's connectivity market is developing, with over 6 national and regional carriers present in the country's 14 colocation facilities, as of September 2025. While carrier choice is more concentrated than in larger hubs, carrier-neutral options are available.

Direct Cloud On-Ramps: Direct cloud connectivity is available via at least one on-ramp, as of September 2025. This provides dedicated access to Alibaba Cloud. Connectivity to other major cloud providers like AWS, Google Cloud, and Azure is typically established via network partners or through regional hubs like Singapore.

Internet Exchange Points (IXPs): The primary exchange is the Vietnam National Internet Exchange (VNIX), which facilitates the majority of domestic traffic peering. Efficient local routing through VNIX reduces latency for in-country users.

Bare Metal: Bare metal server solutions are available in Vietnam, primarily through regional and local providers. Companies like Leaseweb offer dedicated server options, enabling 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 makes it an attractive location for energy-intensive computing workloads.

Power Grid Reliability: The power grid in major metropolitan areas like Ho Chi Minh City and Hanoi is generally reliable for commercial operations. Data centers in these corridors are supported by redundant power feeds and multiple substations to ensure high levels of uptime.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers are concentrated in and around Ho Chi Minh City and Hanoi, the country's primary economic centers. This proximity provides low-latency connectivity to financial services, manufacturing, e-commerce, and government sectors.

Regional Market Reach: Vietnam serves as a digital gateway to the Greater Mekong Subregion, offering effective reach to nearly 100 million domestic consumers and adjacent markets in Cambodia and Laos.

Tax Advantage For Data Centers: The government does not currently offer specific national tax incentives targeted directly at data center development or operation. Businesses should evaluate standard investment incentives that may apply based on location or industry.

Natural Disaster Risk

Vietnam has a Moderate disaster risk profile, with an overall score of 4 out of 10, as of September 2025. The primary natural hazards stem from its extensive coastline and river systems. Key risks for infrastructure planning include:

• River Flood (9.9/10)
• Coastal Flood (9.6/10)
• Tropical Cyclone (5.9/10)
• Tsunami (5.9/10)