Data centers in Vietnam are experiencing a surge as the economy perks up and more businesses adopt technology to streamline their operations. The industry is just beginning to develop and infrastructure has to be able to grow quickly to meet the demand. It’s important that providers ensure that they have reliable power sources and comprehend the complicated regulatory framework of the country.
Up until recently, the country had strict rules regarding foreign ownership of cloud and data businesses, but that changed this week. The new Law what is m&a on Telecommunications eliminated the restriction of 49% for foreign ownership, allowing full ownership of data and cloud businesses by investors from abroad. This is a great change for the industry since it will encourage foreign investment and increase tech capabilities in the country.
One company taking advantage the policy change is Google which is currently considering a «hyperscale» data center in Ho Chi Minh City, sources close to the plans told. The source did not provide the size of the investment. It will be significant for the industry of data centers in Vietnam. This is the first time that a large U.S. technology company invests in Vietnam. Large data centers typically prefer to build their facilities in other countries because of security concerns and the high operating costs.
Alibaba, a Chinese company is also building data centers in Vietnam. This is to ensure compliance with local laws that require companies to store local information. It is currently using data centers owned by telecommunications firms Viettel and VNPT to meet the requirement.
Ho Chi Minh City, Hanoi and other cities are becoming hubs for cloud service providers. A number of international companies have made major investments in the region including NTT, Edge Centres, and STT Global Data Centers (STT GDC).
With its affluent workforce, competitive pricing when compared to other countries, and its supportive government policies, Vietnam is a good choice for companies looking to invest in data centers. As the market expands, players must understand the risks and benefits to maximize their profits.
Data centers use a lot energy. To meet the rising demand, providers need to have the right infrastructure. This includes ensuring a strong and reliable power supply, making sure that the environment is safe for storage of data, and ensuring secure connectivity. Although these issues can be overcome with the right planning and execution, they must be weighed carefully against the potential benefits of investing in this booming sector. In Vietnam, for example, the cost of building an data center with a capacity of 50 megawatts can be anywhere from $300 million to $650 million. This is a large portion of an organization’s IT budget. It’s important to weigh both the pros and the cons before making a decision. If you need assistance with your data center project, please contact us for more details.