Data Centers in Hanoi
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Hanoi – Vietnam's Northern Connectivity Hub
Executive Summary
Hanoi serves as the critical digital infrastructure hub for Northern Vietnam, offering a strategic foothold for businesses targeting the country's rapidly growing economy. The market provides a cost-effective alternative to more established regional hubs, making it an excellent choice for content delivery, manufacturing, and services requiring low-latency access to the Vietnamese population. This location is ideal for companies building a resilient presence in Southeast Asia's dynamic digital landscape.
Hanoi: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong national connectivity but limited direct international peering and cloud access. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access is via network extensions from regional hubs like Singapore and Hong Kong. |
| Power Cost | $0.07–$0.10/kWh | Highly competitive pricing for the region, supporting cost-effective operations at scale. |
| Disaster Risk | Medium (4/10) | Primarily exposed to river flooding and tropical cyclones, requiring site-specific due diligence. |
| Tax Incentives | No | Vietnam offers a predictable tax environment without specific incentives for data centers. |
| Sales Tax | 8% VAT | Standard value-added tax applies to services, in line with regional averages. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: As of September 2025, Hanoi's data centers are served by at least 3 primary national carriers. While the market is developing, carrier-neutral facilities provide essential access to Vietnam's main terrestrial and submarine cable networks.
Direct Cloud On-Ramps: There are no direct, private cloud on-ramps within Hanoi as of September 2025. Secure, high-performance connections to providers like AWS, Google Cloud, and Azure are established via network links to major interconnection hubs, primarily Singapore.
Internet Exchange Points (IXPs): The Vietnam National Internet Exchange (VNIX) has a presence in Hanoi. This IXP facilitates efficient local traffic exchange, reducing latency for domestic users and improving application performance within the country.
Bare Metal: Bare metal server options are available in Hanoi, offering dedicated compute resources for performance-sensitive workloads. Providers like Hivelocity offer deployment capabilities in the region.
Power Analysis
Average Cost Of Power: Industrial power rates in Hanoi range from approximately $0.07 to $0.10 per kWh as of September 2025. This competitive pricing structure makes large-scale deployments more economical compared to many other markets in the Asia-Pacific region.
Power Grid Reliability: The power grid supporting Hanoi's industrial and technology parks is generally stable. Data centers in the area are built with significant redundancy, including multi-grid connections, on-site fuel storage, and N+1 or 2N UPS configurations to ensure continuous uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Hanoi are located to serve the capital's key government, financial, and technology sectors. This proximity provides low-latency connectivity for enterprises and public sector organizations headquartered in the city.
Regional Market Reach: Hanoi is a powerful hub for delivering digital services to Vietnam's population of nearly 100 million people. It is particularly effective for reaching the northern region, a major center for manufacturing, logistics, and a growing consumer market.
Tax Advantage For Data Centers: Vietnam’s tax policy does not currently offer specific incentives for data center development. This creates a straightforward and predictable financial environment for investment without complex eligibility requirements.
Natural Disaster Risk
Hanoi has a Medium overall disaster risk profile, with an INFORM Risk score of 4 out of 10 as of September 2025. The primary environmental threats are meteorological and hydrological, requiring careful facility selection.
Key natural hazards include:
- River Flood: The most significant and frequent threat to the region.
- Coastal Flood & Tsunami: A high national risk for Vietnam that can indirectly impact Hanoi by disrupting submarine cable landings and logistical supply chains.
- Tropical Cyclone: The area is susceptible to cyclones, which can impact power grids and network infrastructure.
- Earthquake: A medium risk for the region.
