More Singapore firms develop new data centres in Vietnam
Singaporean businesses are increasingly investing in new data centres in Vietnam to serve the rising demand for data storage solutions in Vietnam.
Singapore-based Worldwide DC Solution has recently obtained an investment license to develop its 1Hub data centre in Saigon Hi-tech Park (SHTP) with a total investment capital of $70 million.
The 1Hub data centre will be located at OneHub Saigon Complex invested by Ascendas Saigon Bund Co., Ltd in SHTP. With a total construction floor area of over 18,000 square metres, the project will provide rental services of servers, racks, co-location, and data centre management services. The project is designed to meet the rigorous technical standards of Tier III data centre.
The 1Hub data centre is slated to complete construction and start operation in early 2025. This is a foreign-invested project with the largest investment capital in SHTP in 2021.
In November, Singaporean infrastructure investor Infracrowd Capital plans to build a data centre with a total investment capital of $100 million in Danang. The company signed an MoU with Danang IT Park Development JSC to develop a Tier III standard data centre in the park.
According to a report by Markets and Research, the Vietnamese data centre market is forecast to grow at a compound annual growth rate of over 14.64 per cent until 2026. The growth is driven by government projects and initiatives in the country. Data protection is a matter of global concern and is becoming an important issue on the agenda of the Vietnamese government as well.
The data localisation requirement under the Cybersecurity Law, plus the need for better processing speed to assist Vietnamese users are the main drivers, which are anticipated to significantly enhance the demand for data centres in Vietnam. The Vietnamese government's inclination toward digitalisation has further bolstered the demand for data centres across the country.
Furthermore, the Vietnamese data centre market is driven by the shifting of enterprises' data to cloud platforms. This has led to an increase in the adoption of data storage solutions. Meanwhile, the growing adoption of big data solutions, the Internet of Things, and cloud-based solutions, among others, is expected to propel market growth through 2026.