A group of technology companies, including Viettel, VNPT, FPT Telecom, CMC and VNG Data Center, recently submitted urgent requests urging authorities to reconsider the shift from production electricity tariffs to higher business rates for certain data center operations.

The firms argued that the reclassification would significantly increase operating costs for digital infrastructure considered critical to Vietnam’s technology and telecommunications ecosystem.

In reply, the ministry said data centers are subject to electricity tariffs based on usage purpose and has asked the power sector to implement the regulation in line with existing legal provisions and feedback from relevant ministries.

Explaining its position, the ministry cited Decision 28/2014 by the Prime Minister on the retail electricity tariff structure and Circular 16/2014, which guide the application of retail tariffs by customer type and usage purpose. When the earlier circular was issued, large-scale data centers were not widespread and were generally categorized under production tariffs.

Circular 60/2025, which replaces and supplements previous provisions, introduces specific guidance for “facilities providing centralized data processing, storage and management services.”

Under the current rules, data centers that provide services to third parties must apply business electricity tariffs. Facilities serving only internal operations may continue to apply tariffs based on the usage purpose stated in their contracts, typically production rates. Where both internal and external services are provided, electricity consumption must be allocated proportionally.

The ministry said this approach reflects the principle of classifying electricity prices according to the nature of activities and end use.

It added that the Ministry of Science and Technology had also provided written feedback, noting that telecom enterprises’ data center operations share characteristics with other telecommunications infrastructure currently charged at production rates. The opinion suggests there may be practical and legal grounds to consider the companies’ proposal.

On February 13, the trade ministry asked the Vietnam Electricity to instruct its units to apply tariffs to data centers in line with prevailing regulations and the inter-ministerial guidance.

Vietnam currently has 41 commercial data centers with a combined designed capacity of 221 MW, and several large-scale projects have been announced over the past year.