24 May 2026
The data center in Vietnam market is operating at 524.7 MW of designed capacity in 2025, projected to reach 950 MW by 2030, according to Savills’ Industrial Insider 2025, with the first hyperscale facility expected online by 2027 along the Tan Thuan / Saigon Hi-Tech Park corridor and with the first hyperscale facility expected online by 2027.
In this article, we will cover where the build is concentrating, what’s driving it, and the constraint investors keep underestimating.
“Beyond cost advantages, factors such as connectivity infrastructure, a clear legal framework, and the ability to meet global standards are playing an increasingly decisive role in attracting and retaining high-quality FDI.”
– John Campbell, Director, Head of Industrial Services at Savills Vietnam
The data center in Vietnam market is rapidly expanding to 950 MW by 2030 because of regulatory liberalization, strict data privacy laws, cloud and AI migration, and explosive e-commerce growth.
Operating at 524.7 MW of designed capacity in 2025, the sector generates an estimated $1.04 billion to $1.57 billion in revenue. By 2031, it is projected to surpass USD $3 billion, registering a compound annual growth rate of over 20%. With 28 existing colocation facilities and 13 upcoming, this space is becoming one of the fastest-growing digital infrastructure hubs in ASEAN.
Key growth drivers include:
– Regulatory Liberalization: Effective January 2025, 100% foreign ownership is permitted, spurring major joint ventures and foreign direct investment.
– Strict Data Privacy Laws: Enforced in January 2026, the PDPL penalizes cross-border data violations with up to 5% of local revenue, forcing enterprises into domestic facilities.
– Cloud & AI Migration: Major technological partnerships demand massive, sophisticated power and cooling infrastructure.
– Surging E-Commerce: E-commerce platforms grew 34.4% YoY in early 2025, driving immense reliance on cloud storage.
Beyond cost advantages, factors such as connectivity infrastructure, a clear legal framework, and the ability to meet global standards are playing an increasingly decisive role in attracting high-quality FDI.
You can explore these market shifts in our Industrial Insider 2025.
Developments for a data center in Vietnam are strictly concentrated in designated industrial and high-tech zones because they require an exact combination of submarine cable proximity, grid load availability, fiber redundancy, and compliant zoning.
Building a facility is an exact science. We see developments clustering where four critical filters align:
– Submarine Cable Proximity: Facilities require close proximity to landing stations for international connectivity, with Vietnam expanding its network to reach global hubs in Singapore and Hong Kong.
– Grid Load Availability: Access to reliable, high-capacity power is the primary constraint, making locations with direct access to EVN’s high-voltage substations essential for facilities needing scalable power and Tier-level redundancy.
– Fiber Redundancy: Sites must connect to diverse domestic backbones and multiple international routes to survive cable cuts and avoid single points of failure.
– Zoning Regulations: Developments are strictly governed by Land Law and Construction Law, restricting viable sites to designated Industrial Zones and High-Tech Parks to meet required technical and security standards.
For a deeper look at regional potential, check out our Industrial Hotspot: Explore the Potential of Hai Phong.
Grid-scale power delivery is the next major constraint for Vietnam’s data center cycle because existing connectivity and legal frameworks are now in place, but recent grid overloads proved that energy supply cannot keep up with industrial demand.
The connectivity infrastructure and legal framework that Savills identified as decisive factors are now largely in place, with the PDPL creating clear demand for domestic data sovereignty.
However, the next-order constraint has emerged: grid-scale power delivery. Vietnam requires an estimated USD 128.3 billion in grid investment through 2030 to meet its industrial load forecast, according to the International Trade Administration. The summer of 2025 demonstrated this challenge when HCMC grid overloads delayed data center rack turn-ups and pushed expansion toward Long An province.
Moving forward, the next wave of investable supply won’t be greenfield speculation. It will be strictly limited to projects pre-anchored to firm power agreements.
As we detail in our research on Warehousing, Semiconductors, Data Centres, securing reliable, scalable energy is the new gatekeeper of growth. Any data center in Vietnam must now prioritize energy security above all else to ensure successful deployment.
Vietnam’s data center market will roughly double by the decade’s end, anchored by HCMC hyperscale builds and gated by the speed of grid and renewable infrastructure deployment.
If the Savills 950 MW forecast holds, Vietnam will end the decade with a data center market roughly twice today’s size, anchored by hyperscale builds at the HCMC core, regulated by the PDPL, and gated by how fast grid and renewable infrastructure can keep pace.
This growth trajectory is creating significant opportunities for both developers and end-users:
– Hyperscale Development: Google is reportedly anchoring a hyperscale build near HCMC for 2027, signaling growing confidence from major international players in Vietnam’s digital infrastructure potential.
– Long-term Investment Strategy: Finding suitable locations to build data centers requires substantial capital investment, leading to a trend toward long-term land leases of 10 to 30 years to stabilize operations.
– Strategic Leasing Alternatives: Many businesses are choosing to rent data centers in high-tech zones in key economic regions as an alternative to direct development, opening new investment directions for the future.
At Savills, we are here to help you thrive through these spaces. If you need expert advice, contact Mr. John Campbell via hotline: 0986.718.337. Explore our full range of Savills Industrial Services to find tailored leasing or investment solutions.
Here are some frequently asked questions about data center development and investment in Vietnam’s rapidly expanding market.
Vietnam’s core data center advantages include lower capital expenditure (range from $5.7 million to $8.7 million/MW for Tier-III builds), favorable foreign ownership laws, and competitive energy prices. It also provides strategic regional proximity while avoiding the land and energy constraints of mature Tier-1 markets like Singapore.
Data center development in Vietnam is concentrated in officially recognized Industrial Zones (IZs) and High-Tech Parks (HTPs). These designated zones are carefully selected to provide robust infrastructure, high security, and tax incentives required for these capital-intensive facilities.
The market is attracting a diverse range of investors including global data center operators like ST Telemedia and Sembcorp, technology companies like Google (reportedly), and local enterprises expanding their digital infrastructure. Both colocation providers and end-user companies building their own facilities are active in the market.
