The explosive growth of artificial intelligence (AI) is driving a surge in demand for data infrastructure, positioning Vietnam as an emerging destination for international investment in data centers and telecommunications. With its strategic location, rapidly improving infrastructure, and a steadily expanding Internet market, Vietnam is rising as a critical “connectivity hub” within the Asia–Pacific data center network.
According to data from Cushman & Wakefield, Vietnam currently has approximately 51 MW of operational data center capacity and an additional 39 MW under construction, bringing the total projected capacity to 524.7 MW by 2025. Reports from JLL and Mordor Intelligence also highlight the strong potential of this market as demand for digital transformation, multi-cloud connectivity, and AI-related services has grown significantly in recent years.
At the Vietnam Cloud & Datacenter Convention 2025, international experts noted that Vietnam holds several advantages for attracting new capital inflows in the telecom and data center sectors. However, the country still trails major “data powerhouses” such as Singapore and Malaysia, both of which have attracted tens of billions of USD in data center investments.
Hyperscale giants like AWS, Google, Microsoft, Tencent, Huawei, and Alibaba are the key customer groups shaping data center development worldwide. They seek markets that can simultaneously meet three critical criteria: reliable power supply, large-scale expansion capability, and a transparent regulatory framework. Vietnam benefits from strong geographic positioning, fast-growing Internet traffic, a young digital-savvy population, and continuous investment in telecom infrastructure. However, improving the legal framework, energy policies, and investment incentives remains essential for Vietnam to compete more effectively in attracting hyperscale capital.
Glen Duncan, Head of Asia–Pacific Data Center Research at JLL, emphasized that Vietnam sits within a broader Southeast Asian connectivity ecosystem and is evolving into a “new digital hub” of the region. Nonetheless, he stressed the importance of distinguishing between AI data centers and traditional digital infrastructure, as each requires different standards in power, network capacity, cooling systems, and investment scale.
Amid tightening energy regulations for data centers in many countries, Vietnam is increasingly viewed as an attractive destination thanks to its available land, rising AI demand, and commitment to renewable energy development. If leveraged effectively, these advantages could enable Vietnam to capture billions of dollars in foreign investment, particularly in telecommunications, digital infrastructure, and data centers.
Source: Vietnam Economic Times.
