Vietnam is rapidly gaining prominence as a regional hub for artificial intelligence (AI) infrastructure, as a surge of large-scale data centre investments from both domestic and global corporations takes shape across the country.
The wave of capital — amounting to several billions of US dollars — is expected to position Vietnam as one of the most important AI infrastructure markets in Asia.
One of the latest developments is a partnership between Kinh Bac City Development Holding Corporation (KBC), Accelerated Infrastructure Capital (AIC), and VietinBank to build a major AI-integrated data centre in Tan Phu Trung Industrial Park, Ho Chi Minh City.
Spanning 10 hectares, the project will cost nearly US$2 billion and feature an AI campus designed to handle 200 MW of IT load with the capability to operate about 100,000 GPUs.
Ho Chi Minh City is also reviewing a separate proposal for a hyperscale data centre worth around US$2 billion, submitted by a consortium that includes UAE-based G42, Microsoft, FPT, VinaCapital and Viet Thai. The project aims to operate as an “AI Factory”, supplying advanced AI solutions and cloud infrastructure for markets across Asia and beyond.
Telecommunications giant Viettel continues to lead the sector with two major initiatives. Construction of its 140-MW data centre in Tan Phu Trung — projected to be among the top 10 largest in Southeast Asia — will begin in April.
Its first phase is scheduled to go operational early next year, with full completion expected by 2030. In August, Viettel also inaugurated the An Khanh Data Centre, worth VND 17.5 trillion (US$665 million), which meets Uptime Tier III standards and incorporates the company’s proprietary AI technologies.
CMC Corporation is likewise expanding its footprint with multiple international-standard facilities, including CMC Creative Space in Ho Chi Minh City and the CMC Duy Tan Data Centre in Hanoi. The company’s upcoming hyperscale facility in the city’s high-tech park represents a US$250 million investment and will begin with a 30-MW capacity, expandable to 120 MW.
Meanwhile, VNG and ST Telemedia Global Data Centres are jointly developing two new AI data centres — STT VNG Ho Chi Minh City 1 and 2 — scheduled for completion in the first half of 2026.
Industry projections indicate sharp growth ahead. Deloitte estimates that Vietnam’s AI market could reach US$65 billion by 2035, with US$25 billion coming from AI data centre infrastructure.
The Vietnam Cloud Computing and Data Centre Club (VNCDC) forecasts that the domestic cloud market will climb to US$1.24 billion by 2025 and US$2.5 billion by 2029. Total national data centre capacity is also expected to rise from 525 MW in 2025 to nearly 1,000 MW by 2030.
Foreign investors are taking notice. Vladimir Kangin, CEO of IPTP Networks — which is investing US$200 million in a data centre in Da Nang Hi-Tech Park — said Vietnam offers significant long-term potential, adding that early movers stand to gain the most.
He highlighted Vietnam’s competitive advantages, including the region’s lowest data centre construction cost per MW and profit margins surpassed only by Singapore.
Kangin recommended that the government allow telecom operators to leverage existing power transmission lines for data cables, reduce investment costs, and further enhance energy policies, including support for nuclear power, to accommodate the rising electricity demands of AI data centres.
CMC Vice Chairman and Chief Strategy Officer Dang Tung Son said Vietnam’s data centre investment and operating costs remain among the lowest in the region — at US$6–7 million per MW, roughly 40–60% lower than in Singapore. Industrial electricity prices, averaging 6–10 US cents per kWh, are about one-third of Singapore’s rates.
Combined with an improving legal framework, strong connectivity, and rising demand from AI, cloud services, fintech and e-commerce, Vietnam is increasingly seen as a highly attractive destination for investors.
However, experts cautioned that Vietnam must address challenges such as ensuring stable power supply, streamlining project approvals, boosting international transmission capacity, and developing a skilled workforce.
Dong Mai Lam, General Director of Schneider Electric Vietnam and Cambodia, noted that AI is reshaping how data centres are designed and operated. By 2028, AI-related workloads could account for up to 20% of total data centre energy consumption, compared with 8% in 2023.
He said this would necessitate more efficient cooling systems and higher-density computing environments. As data processing shifts towards distributed models — with half of AI workloads expected to run on hybrid systems — Vietnam will need to modernise its approach to data centre construction and operations to keep pace with global developments.
