As the economy expands and more businesses adopt new technologies to streamline their operations and improve efficiency, data centers in Vietnam are experiencing a boom. But the sector is still in its infancy, and infrastructure needs to increase its capacity quickly to meet demand. It is also crucial for service companies to ensure reliable power supplies and have a solid knowledge of the country’s complex regulatory environment.
The country had strict rules on foreign ownership of data and cloud businesses, but that changed last week. The new Law on Telecommunications has eliminated the cap of 49% on foreign ownership. This allows foreign https://hangbinhdan.com/ investors to control all cloud and data businesses. This is a positive change for the industry as it will encourage foreign investment and increase tech capabilities in the country.
One company taking advantage the change in policy is Google which is currently considering the possibility of establishing a “hyperscale” data center in Ho Chi Minh City, sources close to the plans said. The investment, which the source did not specify in terms of the size, could be a significant boost for the data centre market in Vietnam. It would be the first time the size of a major U.S. technology company invests in the country. Large data centers usually prefer to have their facilities in countries that are not as affluent because of security concerns and the high operational costs.
Alibaba the Chinese company is also constructing data centers in Vietnam. This is to comply with the local laws that require businesses to store local data. To meet this requirement, Alibaba currently operates data centers operated by telecommunications companies Viettel and VNPT.
The country is a popular location for cloud service providers as Ho Chi Minh City and Hanoi both emerging as thriving data center hubs. Several international operators, including NTT Global Data Centers, Edge Centres and STT Global Data Centers have invested significant amounts in the region.
With its abundant workforce, competitive pricing when compared to other countries, as well as supportive government policies, Vietnam is a good option for companies planning to invest in data centers. However, as the market expands and the competition increases, it’s essential to understand the risks and rewards of this lucrative business to maximize their profits.
Data centers consume a lot of energy and, in order to keep pace with increasing demands, it’s vital for companies to have the right infrastructure in place. This includes ensuring a strong and reliable power supply, as well as ensuring that the environment is safe for storage of data, and ensuring secure connectivity. These concerns can be overcome with the proper strategy and implementation, but they must be carefully evaluated against the potential rewards that investing in this sector could bring. In Vietnam, for example the cost of constructing a 50 megawatt data center could range from $300 million to $650 million. This is a significant portion of any company’s IT budget It is crucial to consider the advantages and disadvantages of investing before making an investment. Contact us for assistance with your data center project.