Data Centers in Hanoi
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Hanoi – Vietnam's Northern Connectivity Hub
Hanoi is a primary digital gateway for Northern Vietnam, offering resilient colocation options for businesses targeting the country's capital and its extensive industrial base. While direct cloud access is still developing, the market provides a solid foundation for low-latency service delivery to a large and growing online population. Choosing Hanoi is a strategic decision for performance and presence in one of Southeast Asia's most dynamic economies.
Hanoi: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Good connectivity with diverse fiber routes, though fewer international carriers than Ho Chi Minh City. |
| Direct Cloud On-Ramps | 0 — as of September 2025 | Direct cloud access requires connections to regional hubs like Singapore or Hong Kong. |
| Power Cost | US$0.07–$0.10/kWh — as of September 2025 | Competitive pricing for the region, powered by a mix of renewables and fossil fuels. |
| Disaster Risk | Moderate (4.0/10) — as of September 2025 | Primary risks are river flooding and tropical cyclones; seismic risk is present but lower. |
| Tax Incentives | No | Vietnam does not currently offer specific tax incentives for data center development or operation. |
| Sales Tax | 8–10% VAT — as of September 2025 | Standard Value Added Tax rates apply to services, subject to government policy changes. |
Network & Connectivity Ecosystem
Hanoi's network ecosystem is well-established, serving as the primary interconnection point for Northern Vietnam. The market features a solid mix of local and regional carriers, ensuring competitive options for transit and transport.
Carrier Density & Carrier Neutrality: Hanoi is served by over 3 major telecommunications providers, as of September 2025. Carrier-neutral facilities are available, offering enterprises a choice of networks to optimize for cost and performance.
Direct Cloud On-Ramps: The city has 0 direct cloud on-ramps and 0 cloud regions, as of September 2025. Businesses requiring dedicated cloud connections must utilize private network extensions to major hubs like Singapore or Hong Kong.
Internet Exchange Points (IXPs): The Vietnam National Internet Exchange (VNIX) operates a point of presence in Hanoi. Peering at VNIX helps localize traffic, reduce latency for local users, and lower transit costs.
Bare Metal: Bare metal server options are available from providers operating within Hanoi's data centers. This allows businesses to deploy high-performance, dedicated infrastructure close to their end-users.
Power Analysis
Vietnam's government continues to invest in grid infrastructure to support its rapidly industrializing economy, benefiting data center operators in Hanoi.
Average Cost Of Power: Industrial electricity rates typically range from US$0.07 to US$0.10 per kWh, as of September 2025. These competitive power costs make Hanoi an attractive market for compute-intensive workloads compared to more expensive regional hubs.
Power Grid Reliability: The power grid in Hanoi's key industrial and commercial zones is reliable, with modern data centers connected to multiple substations. Facilities are equipped with extensive backup systems, including UPS and diesel generators, to ensure uptime during any grid disturbances.
Market Access, Business & Tax Climate
Hanoi's strategic location and business environment make it a key center for digital services in the region.
Proximity To Key Business Districts: Data centers in Hanoi are situated to serve the capital's central business districts, government agencies, and the numerous industrial parks in the surrounding Red River Delta region. This proximity is critical for financial services, e-commerce, and manufacturing firms.
Regional Market Reach: From Hanoi, businesses can effectively serve the nearly 100 million people of Vietnam, particularly the large and concentrated population of the northern half of the country. It also serves as a logical point of presence for companies engaging with neighboring markets.
Tax Advantage For Data Centers: Vietnam currently offers no specific tax incentives for data center investment or operations. The corporate income tax and VAT policies are applied uniformly, without special provisions for the digital infrastructure sector.
Natural Disaster Risk
Hanoi has a moderate overall disaster risk profile, with specific environmental factors requiring consideration for infrastructure planning.
Based on the INFORM Risk Index, Vietnam has a medium risk score of 4.0 out of 10, as of September 2025. Key natural hazards impacting the Hanoi region include:
- River Flood: High risk (9.9/10) due to the city's location within the Red River Delta.
- Coastal Flood: High risk (9.6/10) for the broader coastal region, which can indirectly impact logistics and connectivity.
- Tropical Cyclone: Moderate risk (5.9/10), with the area susceptible to storms during the typhoon season.
- Tsunami: Moderate risk (5.9/10) for Vietnam's coastline, though Hanoi's inland location mitigates direct impact.
- Earthquake: Low risk (3.5/10), as the area is not situated on a major fault line.
