Vietnam’s Ministry of Science and Technology has urged the Ministry of Industry and Trade to review regulations on electricity pricing applied to data centers, ensuring alignment with national strategies to develop digital infrastructure.

Recently, Viettel, VNPT, FPT Telecom, CMC and VNG Data Center sent a joint proposal to the Ministry of Industry and Trade regarding the application of electricity price brackets for data centers under Circular No. 60/2025/TT-BCT, issued on December 2, 2025, which regulates electricity pricing implementation.

Under the circular, electricity authorities classify data center operations as “facilities providing centralized data processing, storage and management services”. As a result, electricity tariffs are applied under the commercial service category rather than the production category that had previously been used.

In practice, since early December 2025, some data centers operated by private enterprises have already experienced a sharp increase in electricity costs after the new pricing classification was applied.

For example, at a data center operated by CMC, electricity expenses - the largest component of operating costs - increased by more than 50 percent across the first three billing cycles following the change.

Such a sudden rise in costs has had a major impact on financial planning, service pricing structures and the ability of data centers to maintain stable operations and expand investments. It also raises concerns about potential impacts on Vietnam’s national digital infrastructure.

Responding to these concerns, Deputy Minister of Science and Technology Pham Duc Long signed an official document addressed to the Ministry of Industry and Trade.

From the perspective of state management of digital infrastructure, the Ministry of Science and Technology cited resolutions and documents from the 14th National Party Congress, which define a new growth model driven by science, technology, innovation and digital transformation.

The ministry emphasized the need to build and complete a synchronized and modern digital infrastructure to support national digital transformation, including the development of large-scale data centers that serve as the foundation for the digital economy and digital society.

Proposal to maintain electricity pricing for data centers

The ministry also referred to Resolution No. 57-NQ/TW of the Politburo, which calls for mechanisms and policies to support domestic enterprises investing in data centers while attracting foreign companies to establish data centers in Vietnam that meet international and green standards.

According to the national information and communications infrastructure planning for 2021-2030, with a vision toward 2050, Vietnam aims to reach at least 788MW in total designed data center capacity by 2030.

Currently, however, the country’s capacity stands at around 372MW, highlighting the need to continue attracting investment and expanding data center infrastructure in the coming years.

The Ministry of Science and Technology therefore warned that shifting electricity pricing for data centers from the production category to the commercial category under Circular No. 60/2025/TT-BCT significantly increases operational costs.

Because data centers serve as core infrastructure supporting a wide range of economic and social activities in the digital economy, higher operating costs could have widespread ripple effects.

The change may also undermine policies designed to attract investment in data centers, reducing the competitive advantages of domestic companies and weakening Vietnam’s investment appeal. Electricity pricing is one of the key factors global technology corporations consider when deciding where to invest.

Need to revise Circular 60

The ministry’s document further argued that Circular No. 60/2025/TT-BCT - specifically Clause 19, Article 11 regarding “facilities providing centralized data processing, storage and management services” - is not fully consistent with classifications in Vietnam’s national economic sector system issued under Decision No. 36/2025/QD-TTg.

It also lacks compatibility with the definitions of “data center services” and “data centers” stipulated in Clauses 9 and 23, Article 3 of the Telecommunications Law, and does not accurately reflect the range of services currently provided by enterprises.

As a result, different interpretations have emerged regarding whether electricity tariffs for data centers should be classified under production or commercial purposes.

The Ministry of Science and Technology emphasized that data centers are an essential component of digital infrastructure, directly generating computing, storage and data processing capacity for the economy at an industrial scale.

They also form the foundational infrastructure needed to develop and operate artificial intelligence systems.

In essence, the ministry argued, this is a production activity rather than a retail, commercial or consumer service activity.

Electricity is therefore a production input for data centers, similar to how electricity is used in industrial manufacturing facilities.

Furthermore, under Clause 21, Article 3 of the Telecommunications Law, data centers are classified as telecommunications facilities, similar to other infrastructure such as switching stations and mobile base stations, which currently receive electricity pricing under the production category according to Clause 9, Article 7 of Circular No. 60/2025/TT-BCT.

Therefore, the proposal from enterprises to maintain electricity pricing under the production category for data centers has both legal and practical justification.

Based on these analyses, the Ministry of Science and Technology has asked the Ministry of Industry and Trade to consider and promptly address the enterprises’ proposal by adjusting regulations on electricity pricing for data centers.

Such adjustments, the ministry noted, would help ensure stable and sustainable development of data center infrastructure while aligning with national policies aimed at advancing Vietnam’s digital infrastructure.

At a recent meeting of the national steering committee responsible for implementing Resolution 68 on private sector development, chaired by Prime Minister Pham Minh Chinh, CMC Chairman Nguyen Trung Chinh outlined plans to invest in data centers with a total capacity of 120-150MW over the next five years.

He stressed that Vietnam’s competitiveness in attracting data center investments depends heavily on electricity costs, which represent the largest component in operating such facilities.

Chinh expressed concern that classifying data center electricity consumption under commercial tariffs could sharply increase costs and weaken Vietnam’s ability to attract major clients from markets such as the US, Japan and South Korea.

According to him, data centers should be recognized as foundational infrastructure for the digital economy and should benefit from stable and reasonable electricity pricing to enable enterprises to sign long-term contracts with customers.

These concerns suggest that revising Circular 60 may be necessary - both to support the development of digital businesses and to ensure consistency with national policies aimed at strengthening Vietnam’s digital infrastructure.

Thai Khang