Data Centers in Hanoi
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Hanoi – The Digital Gateway to Northern Vietnam
Hanoi serves as the essential interconnection hub for organizations requiring secure, low-latency access to Vietnam’s political and administrative center. This market is a strategic necessity for enterprises 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 industrial rates for high-density colocation. |
| 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 regulations do not offer specific data center breaks. |
| Sales Tax | 10% VAT – as of December 2025 | Standard national value-added tax applies to 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 and varied path options for redundancy.
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 and Hong Kong remain the standard method for reaching global hyperscalers.
Internet Exchange Points (IXPs): The Vietnam Internet Network Information Center (VNIX-HN) serves as the primary exchange. It facilitates domestic traffic peering to reduce latency for local users and keeps internal data traffic within national borders as of December 2025.
Bare Metal: Dedicated server and bare metal options are available through regional and global providers such as Leaseweb and OVHcloud as of December 2025. These services provide high-performance compute resources without the overhead of a full colocation deployment.
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 compared to higher-cost regional peers. The power mix consists of 44% renewable and 56% fossil fuel sources.
Power Grid Reliability: Data center corridors in districts like Cau Giay benefit from well-engineered infrastructure with redundant feeds from multiple substations. The grid is designed to support heavy industrial loads, ensuring consistent uptime for critical digital infrastructure as of December 2025.
Market Access, Business & Tax Climate
Hanoi provides a stable environment for businesses looking to capture the northern Vietnamese market while maintaining proximity to central government authorities.
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 as of December 2025.
Regional Market Reach: Hanoi is the primary hub for Northern Vietnam, serving a massive population base. It also acts as a secondary redundancy site for operations primarily based in Ho Chi Minh City, providing geographic diversity for national deployments.
Tax Advantage For Data Centers: While specialized data center incentives are currently absent, the general business environment is stable for long-term technology investments. Standard corporate tax structures apply, and the lack of specific incentives is balanced by lower operational and labor costs in the region as of December 2025.
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): This is the highest environmental risk for the area, requiring elevated facility designs and advanced water management systems to ensure continuous operation as of December 2025.
Coastal Flood (9.6): While Hanoi is located inland, regional flooding can impact wider supply chains and logistics. This score reflects the vulnerability of the broader Northern Vietnam corridor.
Tropical Cyclone (5.9): Seasonal storms can bring heavy wind and rain. Data centers in the region typically use reinforced envelopes and high-capacity backup power systems to manage these events as of December 2025.
Tsunami (5.9): This is identified as a regional coastal risk. It does not directly threaten inland Hanoi facilities but remains a factor for coastal landing stations and submarine cable infrastructure.
Drought (4.5): This has a low to moderate impact on cooling systems and general water utility availability, though most modern facilities use closed-loop cooling to mitigate this risk as of December 2025.
