Data Centers in Hanoi
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Hanoi – Vietnam's Digital Transformation Hub
Hanoi is the critical infrastructure hub for businesses targeting Vietnam's rapidly growing digital economy. For companies requiring low-latency access to northern Vietnam's industrial and governmental centers, Hanoi provides a direct and cost-effective entry point, ensuring performance and reach in one of Southeast Asia's most dynamic markets.
Hanoi: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional connectivity, with developing international links. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Connect via regional hubs like Singapore or Hong Kong; private extensions are available. |
| Power Cost | US$0.07–$0.10/kWh – as of September 2025 | Competitive rates for the region, with a growing renewables mix. |
| Disaster Risk | Moderate (4/10) – as of September 2025 | Primary risks are flooding and tropical cyclones; seismic risk is lower. |
| Tax Incentives | No | No specific data center incentives are currently offered, as of September 2025. |
| Sales Tax | 8–10% VAT – as of September 2025 | Standard Value Added Tax applies to services. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: Hanoi's ecosystem includes at least 3 distinct providers, with several carrier-neutral facilities available, as of September 2025. This provides foundational options for redundancy and competitive pricing for local and regional network services.
Direct Cloud On-Ramps: There are no public cloud on-ramps located directly in Hanoi. Businesses requiring dedicated, low-latency cloud access must establish private network connections to major regional hubs such as Singapore or Hong Kong.
Internet Exchange Points (IXPs): The primary exchange is the Vietnam National Internet Exchange (VNIX), which facilitates local traffic peering and improves domestic network performance. Most high-volume traffic exchange, however, relies on private peering arrangements within carrier-neutral data centers.
Bare Metal: Bare metal server options are available in Hanoi, offering dedicated compute resources for performance-sensitive applications. Providers like Hivelocity offer deployment capabilities in the region.
Power Analysis
Average Cost Of Power: Industrial electricity rates range from approximately US$0.071 to US$0.095 per kWh, as of September 2025. These competitive costs, combined with a power mix that includes 44% renewables, make Hanoi an attractive market for energy-intensive deployments.
Power Grid Reliability: The power grid supporting Hanoi's key industrial and commercial zones is well-engineered for business continuity. Data centers in the market leverage multi-substation support and redundant power feeds to ensure high levels of uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Hanoi are strategically located to serve the city's central business districts, as well as the numerous industrial parks in the surrounding Red River Delta region. This proximity provides low-latency connectivity for finance, manufacturing, and government sectors.
Regional Market Reach: Hanoi is the primary digital gateway to northern Vietnam's population of over 25 million people. Its infrastructure effectively serves the broader Indochina peninsula, connecting markets in Laos and beyond.
Tax Advantage For Data Centers: Vietnam does not currently offer specific tax incentives for data center development or operation. The financial benefits of operating in Hanoi stem from competitive operational costs rather than direct tax advantages.
Natural Disaster Risk
Hanoi has a moderate overall disaster risk profile, with an INFORM Risk score of 4 out of 10, as of September 2025. The primary environmental threats are weather-related, requiring careful facility selection and engineering.
Key natural hazards include:
- River Flood: 9.9/10
- Coastal Flood: 9.6/10 (Indirect risk from regional storm surge)
- Tropical Cyclone: 5.9/10
- Tsunami: 5.9/10 (Indirect risk affecting coastal connectivity)
- Earthquake: 3.5/10