Vietnam data centre boom draws billions of US dollars as AI demand accelerates

Billion US dollar projects pile up

Since early 2026, a flurry of large-scale commitments has landed. In February, UAE technology group G42 and a consortium of FPT, VinaCapital and Viet Thai unveiled a long-term partnership to build data centre infrastructure at Saigon Hi-Tech Park in Ho Chi Minh City at a cost of US$2 billion.

In March, a venture of Accelerated Infrastructure Capital, Kinh Bac City Development Holding Corporation and international partners disclosed an AI data centre valued at about US$2.1 billion, including the facility, regional infrastructure, power, water and drainage systems, and GPU capacity. Full investment is slated by the end of the 2027 first quarter.

In late April, Starmason committed US$480.26 million to a hyperscale complex with up to 60MG of IT load for AI and cloud workloads. Singapore-based Evolution, Hathor and Frontier separately announced a US$508.78 million project, Evolution DC VN HCMC, with 52MW of capacity, targeting Uptime Tier III+ and eventual Tier IV certification.

Le Ba Tan, CEO of Viettel IDC, sees the global data centre market reaching US$627.4 billion by 2030, with Asia-Pacific at US$174.8 billion. He projects global growth of about 8.8%, versus 9.3% in APAC and almost 14% in Southeast Asia.

Vietnam is among the highest-potential markets, Tan said, with installed capacity of roughly 104MW seen rising five-to six-fold to nearly 600MW by 2030.

“Vietnam is an attractive destination for next-generation data centres, and these facilities will be able to meet AI demand”, Tan noted.

Cost advantages and room for growth

Vietnam’s appeal rests partly on competitive costs and ample expansion headroom.

Cushman & Wakefield puts Asia-Pacific data centre construction costs at US$7.9-19.2 million per MW. Vietnam ranges from US$5.7-8.7 million, averaging about US$7.2 million, with annual construction cost inflation of roughly 3.8%.

Hanoi and Ho Chi Minh City account for about 73MW of operational capacity, with another 137 megawatts planned by 2030. As projects get larger, power access is emerging as the key constraint: a 100MW project in major clusters faces waits of about two to three years for new supply, the report said.

Le Thi Huyen Trang, CEO of JLL Vietnam, said AI has become critical infrastructure rather than a trend, and that power, data and deployment speed will determine which markets win.

Commercial power prices remain competitive regionally, and Vietnam’s sizable hydropower, wind and solar mix fits well with tenants’ environmental targets. The country also sits on landing points for major submarine cable routes.

Industrial and high-tech parks near cities are the primary sites for development. Land for data centres typically costs 30-50% more than conventional industrial plots because of requirements for location, power, fiber connectivity and dedicated substations.

Building infrastructure to maintain competitiveness

Still, experts said Vietnam’s edge will hinge not just on open investment rules but on coordinated preparations in regulation and infrastructure.

Tan shared that Vietnam must clear bottlenecks in power supply for large projects, renewable energy access, cooling suited to a tropical climate, the workforce to run AI infrastructure and tougher data sovereignty, security and cross-border flow requirements.

Competitive advantage will increasingly belong to countries that can build an integrated digital ecosystem spanning data centres, cloud computing, connectivity and cybersecurity for AI. If Vietnam sustains momentum and clears power, international connectivity and workforce constraints, it can narrow the gap with Southeast Asia’s leading cloud hubs, he added.

Louis Nguyen, Chairman and CEO of Saigon Asset Management, stressed that attracting billions of US dollars from hyperscale operators requires a clear, stable investment environment and adequate infrastructure.

First, Vietnam needs to finish and clarify its data framework, especially sovereignty, privacy, storage, management and cross-border transfers which matter most to investors, especially US-listed companies.

Enforcement must also be predictable so investors can gauge compliance obligations before committing billions of US dollars.

Second is infrastructure readiness. Hyperscale projects need reliable power, renewable energy access, suitable land and water, fiber networks and sufficient submarine cable capacity.

David Jackson, General Director of Avison Young Vietnam, said Vietnam should focus on regulation, infrastructure and workforce to draw more data centre capital.

Vietnam riding wave of data centre investments

The surge in AI demand is significantly impacting plans on data centre investment and expansion in Vietnam as global tech giants and local players are racing to capture the market.