Data Centers in Hanoi
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Hanoi – The Digital Gateway to Northern Vietnam
Hanoi is the primary interconnection hub for enterprises requiring low-latency access to the administrative and political center of Vietnam. This market is a strategic necessity for organizations prioritizing regulatory compliance and localized service delivery within a rapidly expanding digital economy.
Hanoi: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Reliable regional links with growing international fiber capacity. |
| Direct Cloud On-Ramps | 0 – as of December 2025 | Nearest major cloud hubs are located in Hong Kong or Singapore. |
| Power Cost | $0.07 – $0.10/kWh – as of December 2025 | Competitive rates for high-density colocation in Southeast Asia. |
| Disaster Risk | Moderate (4.0/10) – as of December 2025 | Primary concerns involve seasonal flooding and tropical storms. |
| Tax Incentives | No – as of December 2025 | Current local regulations do not offer specific data center breaks. |
| Sales Tax | 10% VAT – as of December 2025 | Standard national value-added tax applies to most digital services. |
Network & Connectivity Ecosystem
Hanoi functions as a critical interconnection point for the northern provinces, supporting a mix of state-owned and private infrastructure.
Carrier Density & Carrier Neutrality: Carrier count: over 5. The market hosts 5–10 carriers as of December 2025, with major players like FPT Telecom and VNPT providing significant local fiber density.
Direct Cloud On-Ramps: Over 0, enabling access to 0 cloud regions. As of December 2025, there are no native on-ramps for AWS, Google Cloud (GCP), or Microsoft Azure in the city. Private extensions via PNI or dedicated waves to Singapore are the standard method for reaching global hyperscalers.
Internet Exchange Points (IXPs): The Vietnam Internet Network Information Center (VNIX-HN) serves as the primary exchange, facilitating domestic traffic peering to reduce latency for local users as of December 2025.
Bare Metal: Dedicated server and bare metal options are available through regional providers like Leaseweb and OVHcloud as of December 2025.
Power Analysis
The energy landscape in Hanoi is characterized by a stable industrial grid that supports the city’s growing manufacturing and technology sectors.
Average Cost Of Power: Industrial electricity ranges from $0.07 to $0.10/kWh as of December 2025. This rate structure allows for predictable operational expenses, which is a significant advantage for high-density colocation requirements.
Power Grid Reliability: Data center corridors in districts like Cau Giay benefit from well-engineered infrastructure with redundant feeds from multiple substations. The grid mix is approximately 44% renewable and 56% fossil fuel as of December 2025.
Market Access, Business & Tax Climate
Hanoi provides a stable environment for businesses looking to capture the northern Vietnamese market.
Proximity To Key Business Districts: Facilities are strategically placed near the Cau Giay and Duy Tan districts. These areas host a high concentration of technology firms and government agencies, making physical proximity vital for hands-on maintenance and low-latency local loops.
Regional Market Reach: Hanoi is the primary hub for Northern Vietnam, serving a massive population base and acting as a secondary redundancy site for operations based in Ho Chi Minh City.
Tax Advantage For Data Centers: While specialized data center incentives are currently absent, the general business environment is stable for long-term investments. Standard corporate tax structures apply, and the lack of specific incentives is balanced by lower operational costs in the region.
Natural Disaster Risk
Hanoi carries an overall risk score of Moderate (4.0/10) as of December 2025. Infrastructure planning must account for seasonal weather patterns and regional geological factors.
River Flood (9.9): Significant risk requiring elevated facility designs and advanced water management systems.
Coastal Flood (9.6): While Hanoi is inland, regional flooding can impact wider supply chains and logistics as of December 2025.
Tsunami (5.9): This is a regional coastal risk and does not directly threaten inland Hanoi facilities.
Tropical Cyclone (5.9): Seasonal storms can bring heavy wind and rain, testing the resilience of facility envelopes and backup power systems.
Drought (4.5): Low to moderate impact on cooling systems and general water utility availability.
