Data Centers in Ho Chi Minh City

Ho Chi Minh City – Vietnam's Digital Commerce Hub

Executive Summary

Ho Chi Minh City is the primary entry point for businesses targeting Vietnam's fast-growing digital economy. Its developing colocation market offers a crucial advantage for delivering low-latency applications and services directly to a large, technology-adept population, directly impacting user experience and revenue.

Ho Chi Minh City: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: The market includes access to over 5 national and international carriers as of September 2025. A growing number of carrier-neutral facilities provide the essential interconnection points needed for resilient network design.

Direct Cloud On-Ramps: Over 1 direct on-ramp is available as of September 2025, enabling dedicated access to 1 cloud region. This includes a native on-ramp to Alibaba Cloud. Access to other major clouds like AWS, Google Cloud, and Azure is typically achieved through network extensions from regional hubs such as Singapore.

Internet Exchange Points (IXPs): The Vietnam National Internet Exchange (VNIX) has a presence in Ho Chi Minh City, facilitating efficient local traffic peering and reducing latency for domestic users.

Bare Metal: Bare metal server solutions are available from multiple providers, offering dedicated compute for performance-sensitive workloads. Providers like Leaseweb are active in the broader APAC region.

Power Analysis

Average Cost Of Power: Industrial power costs in Ho Chi Minh City range from approximately $0.07–$0.10/kWh, as of September 2025. This competitive pricing structure makes it financially viable to operate power-intensive infrastructure compared to more expensive regional hubs.

Power Grid Reliability: The power grid supporting the main commercial districts and industrial zones is generally reliable for business operations. Data centers in the area mitigate any grid inconsistencies with multi-megawatt generator and UPS systems, typically supplied by redundant substations.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers are strategically located to serve the central business district (District 1) and the Saigon Hi-Tech Park (SHTP), providing low-latency connectivity to financial services, manufacturing, and technology companies.

Regional Market Reach: Ho Chi Minh City serves as a digital gateway to Vietnam's population of nearly 100 million people. It is also well-positioned to serve businesses and users in neighboring Cambodia and Southern Laos.

Tax Advantage For Data Centers: The government currently offers no specific tax incentives for data center development or operation. Investment benefits are generally tied to broader high-tech or economic zone initiatives rather than being specific to the data center industry.

Natural Disaster Risk

Ho Chi Minh City has a Medium disaster risk profile, with an overall INFORM risk score of 4.0 out of 10, as of September 2025. The primary environmental threats are weather-related, driven by the region's geography. Key risks include River Flood (9.9/10), Coastal Flood (9.6/10), Tropical Cyclone (5.9/10), and Tsunami (5.9/10). Seismic risk (Earthquake: 3.5/10) is significantly lower.