As the economy grows and more businesses adopt new technology to streamline operations and streamline operations, data centers in Vietnam are seeing a surge. However, the industry is in its early stages and infrastructure needs to grow quickly to meet the demand. It’s also essential for service companies to ensure reliable power supply and have a solid knowledge of the country’s complex regulatory environment.

Until recently, the country had strict rules for foreign ownership of data and cloud businesses, but that changed last week. The new Law on Telecommunications eliminated the 49% cap for foreign ownership, which allows full ownership of data and cloud businesses by foreign investors. This is a positive change for the industry as it will increase foreign investment and increase tech capabilities in the country.

One company that is taking advantage of the policy change is Google, which is weighing the possibility of setting up a “hyperscale” data center near Ho Chi Minh City, an insider with knowledge of the plans told. The source did not provide the amount of the investment. It will be significant for the data center industry in Vietnam. It would be the first time that an enormous U.S. technology company invests in Vietnam. Data centers with large capacity typically prefer to have their facilities within rival nations because of security concerns and the high operational costs.

Alibaba the Chinese company is also constructing data centers in Vietnam. This is to conform to local laws that require businesses to keep local information. It currently uses data centers operated 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. Several international operators have already invested massively in the region, including NTT, Edge Centres, and STT Global Data Centers (STT GDC).

With its abundant workforce, competitive pricing when compared to other countries, and its supportive government policies, Vietnam is a good option for companies looking to invest in data centers. As the market expands, companies must be aware of the risks and benefits to maximize their profits.

Data centers require a significant amount of energy, and in order to keep up with rising demand, it’s crucial for providers to have the appropriate infrastructure in place. This includes ensuring a strong and reliable power supply, making sure that the environment is safe for data storage, as well as providing secure connectivity. These issues can be resolved by the right strategy and implementation, but they must be carefully evaluated against the potential what is data room benefits that investing in this sector could bring. For instance, a data center with a capacity of 50 megawatts could cost between $300 million or $650 million to construct in Vietnam. This is a large portion of an organization’s IT budget. It is crucial to weigh both the pros and pros before making a decision. Contact us if you need assistance with your data center project.