The Vietnamese data centre market stood at US$858 million last year and is forecast to grow at a compounded annual growth rate of over 14.64% until 2026.
The growth in the Vietnamese data centre market was driven by government projects and initiatives, the report said.
Data protection is a matter of global concern and is becoming an important issue on the agenda of the Vietnamese Government.
The data localisation requirement under the Cybersecurity Law, plus the need for better processing speeds to assist Vietnamese users are the main drivers, which are anticipated to significantly enhance the demand for data centres in the country.
The Vietnamese Government's inclination toward digitisation has further bolstered the demand for data centres across the country.
Furthermore, the Vietnamese data centre market is driven by the shifting of enterprise data to cloud platforms. This has led to an increase in the adoption of data storage solutions, which in turn is expected to positively influence the growth of the market.
Additionally, growing adoption of big data solutions, IoT and cloud-based solutions among others, is expected to propel market growth through 2026.
The Ministry of Information and Communications (MIC) recently held a seminar regarding the digital address system, towards a goal of each family having one.