Statistics show that Việt Nam now has nearly 30 data centres with more than 46 per cent based in the northern region, over 35 per cent in the southern region, and over 18 per cent in central localities. — Photo vneconomy.vn

HÀ NỘI — Foreign and domestic companies are eyeing the development of data centres in Việt Nam, as demand for data storage in the country is increasing.

In December, VNG Company put into operation a new and international standard data centre called VNG Data Centre in HCM City. The centre has an initial size of 410 server racks and will expand to 1,600 racks.

Earlier, in October, Viettel also launched the Viettel Cloud ecosystem with 13 centres and more than 9,000 racks, and over 60,000sq.m of floor area – the largest data centre infrastructure in Việt Nam.

The group announced that it would invest another VNĐ10 trillion (US$424.4 million) in Viettel Cloud to expand its scale to 17,000 racks by 2025.

In August the same year, CMC Corporation inaugurated an international standard data centre with a scale of 1,200 racks on an area of 13,000sq.m in HCM City, and an investment of VNĐ1.5 trillion.

Well-known foreign enterprises also participate in building data centres in Việt Nam. For example, in March, Quang Dung Technology Distribution Joint Stock Company under GREENFEED Vietnam Corporation and NTT Global Data Centres Company under Japan's NTT Group jointly built a Tier III centre in HCM City which is expected to officially come into operation in 2024.

Huy Nguyễn, co-founder and CEO of KardiaChain, and former senior technical director of Google told Tuổi trẻ (Youth) newspaper that it was no coincidence that many businesses invest in data centres because the revenue would be substantial.

The company was currently using the service of a Vietnamese business with a cost of up to $50,000 each month, he said. According to ResearchAndMarkets, the world's leading market research store, Việt Nam is in the top 10 emerging markets in 2021 for global data centres.

The Vietnamese data centre market stood at $858 million in 2020 and is forecast to grow at a compounded annual growth rate of nearly 15 per cent until 2026.

The growth in the Vietnamese data centre market is impressive with international standard service delivery capacity, and a large number of organisations and enterprises, according to ResearchAndMarkets.

Statistics show that Việt Nam now has nearly 30 data centres with more than 46 per cent based in the northern region, over 35 per cent in the southern region, and over 18 per cent in central localities.

This rate is different because large data centres are mainly based in ministries and branches in the north. From 2010, the electricity consumption capacity of the centre in Việt Nam has tripled.

Domestic companies expect a data centre system made in Việt Nam will contribute to the country’s digital economy.

Tào Đức Thắng, chairman and director general of Viettel Group, said it set a target that each Vietnamese citizen, household, organisation, and enterprise would have a cloud-based data store located in Việt Nam, researched, developed and operated by Vietnamese engineers.