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DIGITAL BIZ

Set for success

Vietnam’s data center and cloud computing markets
boast the potential and possibility of developing rapidly.

By NHI ANH

ogether with broadband telecom- ment’s digital transformation program. technology is one of the top 10 strategic
munications infrastructure and Inter- However, barriers hindering the devel- technology trends in 2024.
T net of Things (IoT) infrastructure, opment of the data center market in the According to forecasts from CB Insight
cloud computing and data centers play country include its unstable submarine on different types of data centers, the
important roles in shaping overall digital cable connections and concerns over world has begun to head towards “tomor-
infrastructure in Vietnam, which is seen power shortages. row” by choosing locations in cooler cli-
as one of the fastest-growing markets in mates with lower energy consumption and
ASEAN in the two fields. It has been esti- Data centers and cloud with priority given to using renewable
mated that Vietnam’s data center market computing speeding up technology and energy sources, while
value will reach $1.6 billion by 2030, Some studies have forecast that Viet- applying AI in operations together with
posting a compound annual growth rate nam’s data center market will post dou- the use of advanced cooling technologies.
(CAGR) of nearly 11 per cent. ble-digit growth of 11-12 per cent by 2030. Google and Facebook, for example, have
According to Research and Markets, Four domestic telecom giants - Viettel, built large data centers in Iceland and
meanwhile, Vietnam’s data center market VNPT, FPT, and CMC - currently account Microsoft has started to operate an under-
will grow at a CAGR of 10.68 per cent in for 97 per cent of market share. water data center. These are breakthrough
the 2022-2028 period, increasing from $561 Growth in the cloud computing market, measures as the world heads towards a
million in 2022 to $1.037 billion by 2028. meanwhile, slowed in 2022 and 2023, as “future” of building offshore data centers
Addressing the recent Data Center & many businesses and organizations, after that operate based on renewable energy.
Cloud Infrastructure Summit, Director of moving their services to the cloud, then
Viettel IDC Hoang Van Ngoc said the looked to cut costs. However, this will only Development trends
global data center market is expected to be a short-term measure, and the market is In Vietnam, data centers remain tradi-
stand at around $321 billion this year expected to recover by the fourth quarter of tional in architecture and design, with nor-
after posting a CAGR of 7.3 per cent. 2024 and grow once more in 2025 and 2026. mal cooling solutions and using electricity
The Asia-Pacific region sees among the Vietnam’s cloud computing market from Electricity of Vietnam (EVN) without
highest data center market growth rates, has recorded the highest growth in South- the option of accessing renewable energy.
with a CAGR forecast at 18.9 per cent by east Asia and ranked third in Asia. It is In order to fulfill goals and the net-
2028, reaching nearly $30 billion. Growth forecast to grow 19-20 per cent over the zero emissions commitment it made at
has been recorded in both primary and next five to ten years after reaching $768 COP 26, Vietnam’s data center infrastructure
secondary markets, with a shift seen recently million by 2025 and $1.2 billion by 2030. needs to head towards “tomorrow” within
from the primary market (developed coun- Under the National Digital Transfor- the next three to five years and accompany
tries) to the secondary market (developing mation Program until 2025 with a vision to the world to the “future” post-2030.
countries, including Vietnam). The data 2030, which contains three pillars - digital Moves are afoot. A representative from
center markets in Vietnam, Philippines, government, digital economy, and digital Viettel IDC said its new data center will
Indonesia, Malaysia, and Thailand are all society - a strategy of “moving to the cloud” use AI in its operations, apply liquid cooling
tipped to boom over the next few years. is considered paramount. This will provide technology, and access renewable energy
Mr. Ngoc believes that Vietnam pos- major opportunities for Vietnam’s data once a clear legal framework is in place.
sesses many growth drivers to boost its center and cloud computing sectors to grow Business Manager of Climaveneta Vietnam,
data center market, such as an inexpensive and create breakthrough movements. Khuong Nguyen, said liquid cooling will
labor market, an abundant information Experts believe that sustainable tech- become among the popular technologies
technology workforce, lower construction nology is among the trends that will change applied in the near future. However, Head
costs, and a legal framework and associated the digital game during 2024, while research of the Data Development Office at Nokia,
support in place to promote the govern- from Gartner also shows that sustainable Byung Ki Lee, said that while the data

40 Vietnam Economic Times May 1, 2024 en.vneconomy.vn