Google is reportedly considering building a "hyperscale" data center near Ho Chi Minh City, marking the first investment in Viet Nam by a major U.S. technology company. The move is driven by the rapid growth of cloud customers and the development of the country's digital economy.
A hyperscale data center is the largest and most powerful facility in the industry, providing immense computing power, storage and networking capabilities with energy consumption comparable to that of a large city. According to real estate consultancy Jones Lang LaSalle, the cost of a 50 MW hyperscale data center in Viet Nam is estimated to be between $300 million and $650 million.
If Google goes ahead with this investment, the data center could be operational by 2027, making a significant impact on Viet Nam's digital infrastructure. Internal discussions about the project are ongoing.
Google's Expansion in the Region
Previously, Google had only one data center in Southeast Asia, located in Singapore. The country was chosen for its "ideal combination" of reliable infrastructure, skilled workforce and transparent, business-friendly legal environment. Google even increased its investment by $5 billion to expand its data center and cloud facilities in Singapore, with the expansion completed in June.
Meanwhile, Malaysia is set to join Google's data center network with an initial investment of $2 billion. This will be Google's first data center and Google Cloud region in the country, as announced in May.
Viet Nam's Game-Changer to Boost Data Center Investment
Viet Nam is striving to catch up in the race to attract data center investment in Southeast Asia. Infrastructure challenges, such as unreliable power supply and slow internet connectivity, have long been obstacles.
However, a fresh breeze is blowing with the enactment of a new law that opens the door wider for foreign investors to fully own data center businesses in the country. This bold move is expected to transform Viet Nam into a promising technology investment destination.
Google's Viet Nam Takeover
Amid regulatory reforms aimed at attracting foreign investment, Google has established a representative office in Viet Nam and hired dozens of professionals, including engineers and marketing specialists. This new team aims to enhance local services and support the country’s digital transformation.
At the launch of the "Building Viet Nam’s AI Future" program in July, Marc Woo of Google Asia-Pacific projected that Viet Nam’s digital economy could grow by up to 11 times by 2030. Additionally, Google is collaborating with the National Innovation Center to offer 40,000 scholarships in various courses, including artificial intelligence (AI).
