Super data centers are large-scale with huge computing and storage capacity, and Vietnam is an attractive market, according to experts from VinaCapital.
The boom in demand for artificial intelligence (AI) is reshaping infrastructure, including the construction and operation of data centers. Investors are mainly focusing on hyperscale data centers, large-scale facilities with huge computing and storage capacity and flexible scalability.
According to Mr. Tran Thanh Hai, Deputy General Director of VinaCapital's Energy and Infrastructure Department, Singapore is no longer the most attractive destination in the region due to limitations in land area and power supply. Instead, he believes that there is a shift in the data center investment market in the Southeast Asian region.
“The wave of investment in super data centers in Malaysia is slowing down. Vietnam is becoming an attractive destination for international investors,” Mr. Hai said at the Innovation Day in Hanoi on the afternoon of September 17.
They are interested in the Vietnamese market because of its cheap land and labor costs, along with large clean electricity reserves in the region, suitable for the green future of the centers.
“Investors from the US and surrounding countries all want to enter Vietnam,” said a representative of VinaCapital. Besides transportation, digital infrastructure is identified by VinaCapital as a key area in the coming years. They aim to “pull” a super data center to the country.
According to international practice, a country only needs to attract 1-2 super centers, other investors will follow. Mr. Hai gave the example of Thailand, after Google announced the construction of a $1 billion data center, many other businesses also announced investment plans. TikTok plans to invest $8.8 billion, Microsoft also announced the opening of a data center in this country.
That is, if Vietnam successfully attracts 1-2 super data centers within a year, it will gather "all the talents" in the next three years.
Mr. XingJian Pang, General Director of Schneider Electric East Asia, agreed that Vietnam will be the next country to become the “home” of data centers. However, like the challenges of previous countries, he pointed out that Vietnam also has to cope with huge electricity consumption needs.
The International Energy Agency (IEA) predicts that by 2028, AI could account for 15–20% of total electricity consumption in data centers, up significantly from 8% in 2023.
Mr. Pang suggested that smart and efficient grid management is essential. For example, managers can integrate AI, which analyzes data from the grid system, allowing them to monitor energy consumption patterns and grid performance in real time, and forecast fluctuations in demand and supply.
In addition to the power supply challenge, many businesses are concerned about electricity quality, aiming for green transformation. Meanwhile, Vietnamese data centers are often built near customers, mainly in Hanoi and Ho Chi Minh City. Finding a large enough land fund to develop renewable energy right in these two cities is not feasible.
Last year, the Government issued a decree allowing direct trading between renewable energy generators and large electricity users (DPPA mechanism), opening up the potential for green data center conversion while creating opportunities for renewable energy developers. In terms of output, Vietnam's renewable energy ambitions are reflected in the revised Power Development Plan VIII, with a share of 28-36% by 2030, and 74-75% by 2050 (excluding hydropower).
The development of super data centers is also focused on by domestic technology enterprises. Viettel started construction of a 140 MW data center last April, planning to upgrade another center into a super center by 2030. CMC will build the first super center with an investment capital of 250 million USD in Ho Chi Minh City in 2026. Next month, EcoDC will announce investors, aiming to build a super data center, also in Ho Chi Minh City.
According to a report by the Ministry of Science and Technology in May, Vietnam has 41 commercial data centers operating nationwide, belonging to 12 enterprises, with a total designed capacity of 221 MW. Mr. Pham Nguyen, General Director of EcoDC, forecasts that the capacity of data centers in Vietnam will increase 5-7 times in the next 5 years.
Mr. Tran Van Khai, Vice Chairman of the National Assembly’s Committee on Science, Technology and Environment, said that many investors and large technology enterprises will enter Vietnam. “Large corporations have plans to enter Vietnam. Infrastructure and the accompanying ecosystem are essential. Investors need to urgently prepare to seize this opportunity,” Mr. Khai said.
Source: vnexpress.net