Vietnam Data Center Colocation Market - Supply & Demand
Dublin, Oct. 06, 2026 (GLOBE NEWSWIRE) -- "Vietnam Data Center Colocation Market - Supply & Demand Analysis 2026-2031" has been added to ResearchAndMarkets.com's offering.
The Vietnam data center colocation market is projected to expand at a CAGR of 27.71% between 2025 and 2031. Growth is being supported by cloud migration, artificial intelligence adoption, digital transformation, hyperscale investment, improved international connectivity, and rising demand for secure, high-performance data center infrastructure.
Recent Vietnam Data Center Market Developments
In November 2025, Kinh Bac City Development Holding Corporation (KBC), Accelerated Infrastructure Capital (AIC), and VietinBank collaborated on an AI-focused data center campus at Tan Phu Trung Industrial Park. The proposed campus has a planned capacity of 200 MW.
In June 2026, Foxconn partnered with Brookfield to develop up to 1GW of renewable energy and battery energy storage capacity in Vietnam under a long-term Power Purchase Agreement (PPA). The initiative is expected to support Foxconn's expansion while addressing growing industrial and digital power requirements.
In May 2025, Viettel IDC partnered with KT to develop an AI-focused data center and GPU farm in Vietnam, representing an investment of approximately $94.5 million.
Automation, AI, and Digitalization Drive Colocation Demand
Vietnam is accelerating the adoption of AI, cloud computing, automation, and advanced digital technologies across public and private sectors. This transition is increasing demand for scalable colocation capacity, high-density computing infrastructure, GPU resources, and resilient data center services.
The National Strategy on Research, Development, and Application of Artificial Intelligence aims to position Vietnam as a leading AI innovation hub in the ASEAN region by 2030. Priority sectors include agriculture, defense, education, finance, healthcare, manufacturing, public services, science & technology, and the digital economy. These initiatives are expected to strengthen demand for AI-ready and hyperscale data center facilities.
Connectivity Expansion Supports Data Center Investment
Vietnam has approximately six operational submarine cable systems supporting international connectivity. Around three additional systems are planned, which should improve network redundancy, increase bandwidth capacity, and enhance the country's attractiveness to cloud providers, hyperscale operators, and colocation investors.
In August 2025, Vietnam launched the Vietnam-Singapore Terrestrial Network (VSTN), a 2,423.3-mile land cable connecting Da Nang with Singapore through Laos, Thailand, and Malaysia. Owned by the Vietnam Posts and Telecommunications Group (VNPT), the network strengthens regional connectivity and reduces reliance on submarine routes.
Power Availability and Infrastructure Constraints
Reliable power remains a critical consideration for data center site selection in Vietnam. Several northern industrial provinces continue to experience supply constraints during peak electricity demand, increasing the need for grid expansion, renewable energy integration, battery storage, and backup power systems for mission-critical facilities.
Extreme weather and network outages also create operational risks. In September 2025, Typhoon Yagi damaged northern Vietnam's power transmission network, affecting electricity supply before restoration work recovered most impacted 500kV, 220kV, and 110kV lines. In June 2025, partial and full outages involving the Asia Pacific Gateway (APG), Asia Africa Europe-1 (AAE-1), and Tata TGN Intra Asia submarine cables slowed internet connectivity across the country.
Vietnam Data Center Colocation Market Segmentation
The cloud & IT sector led colocation demand in 2025, accounting for approximately 20% of the market. Its share is forecast to rise as enterprises and government organizations migrate additional workloads to cloud platforms. Vietnam aims to achieve full cloud computing adoption across government agencies by 2031 and targets 70% adoption of domestic cloud services among businesses.
Retail colocation generated the largest share of total market revenue in 2025. However, wholesale colocation is projected to contribute nearly 47% by 2031. This shift will be driven by hyperscale deployments, larger leasing requirements, continued cloud adoption, and investment in AI-enabled facilities. Global cloud providers and infrastructure investors are expected to play an increasingly important role in expanding Vietnam's wholesale colocation capacity.
Vietnam Data Center Colocation Market Report Coverage
Market size analysis by utilized white floor area, IT power capacity, and rack capacity
Core & Shell, installed, and utilized IT power capacity analysis, including occupancy rates
Colocation supply and demand forecasts by MW, area, racks, and end-user industry
Retail and wholesale colocation revenue forecasts for 2025-2031
Retail colocation pricing, Addons, wholesale pricing, and pricing trends
Cloud operations, sustainability initiatives, and upcoming submarine cable projects
Competitive analysis by operator revenue and IT power capacity
Vendor analysis by data center count, white floor area, capacity, and location
Coverage of 28 existing facilities and 22 upcoming facilities across four cities
Analysis of growth drivers, investment opportunities, constraints, and market prospects
Key Questions Addressed
How many existing and upcoming colocation data center facilities are located in Vietnam?
How much IT power capacity is expected to be utilized in Vietnam by 2031?
Which factors are driving growth in the Vietnam data center colocation market?
Which new entrants are investing in Vietnam's data center industry?
Key Topics Covered
1. ABOUT THE ANALYST
2. DATA CENTER CAPABILITIES
3. RESEARCH METHODOLOGY
4. MARKET SCOPE
5. MARKET DEFINITIONS
6. MARKET SNAPSHOT
Colocation Market Snapshot