- Vietnam ranks 2nd in Southeast Asia for data center returns, with YoC of 17.5–18.8%.
- Major 2025 projects underway by Viettel and CMC, focusing on hyperscale and AI-ready facilities.
- Low costs, strong policy support, and foreign ownership laws attract global investors.
Vietnam currently holds the second position in Southeast Asia for returns on data center investments, achieving a yield on cost (YoC) of 17.5–18.8%, trailing Singapore’s 21–23%, according to the latest Asia-Pacific Data Centre Investment Landscape report by Cushman & Wakefield, as cited by the Vietnam News Agency.
Vietnam is witnessing a surge in data center investments, with the initial half of 2025 marking a rise in extensive and hyperscale initiatives nationwide. Fueled by competitive pricing, robust government backing, and swift digital infrastructure needs, Vietnam is establishing itself as an emerging data center in Southeast Asia.
A number of significant data center initiatives were started in 2025. In Ho Chi Minh City, CMC Group obtained authorization to construct its CMC Hyperscale DC within the Saigon Hi-Tech Park, starting with a capacity of 30 MW and potential expansion to 120 MW. The construction of the $250 million facility is scheduled to start in 2026.
In HCM City, the Viettel Military Industry and Telecoms Group (Viettel) began construction in April on a 140 MW data center located in Tan Phu Trung Industrial Park. Covering almost 4 hectares, the site will accommodate up to 10,000 racks and is projected to partially open in the first quarter of 2026.
Viettel's Chairman and General Director Tao Duc Thang mentioned that the group is transitioning from conventional data centers to hyperscale facilities, intended to support national-level AI applications, big data analysis, and cloud platforms.
CMC Chairman Nguyen Trung Chinh stated that their investment goals include attracting international AI companies and converting HCM City into a regional digital center.
Vietnam provides some of the lowest development expenses in the region at $7.1 million per MW, in contrast to the Asia-Pacific average of $10.1 million and Japan's $16.1 million. In Vietnam, capitalization rates are also above regional averages, ranging from 7% to 8%.
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Pritesh Swamy, who leads Research and Insights at Cushman & Wakefield’s Asia-Pacific Data Centre Group, emphasized the importance of Vietnam permitting complete foreign ownership of land and data center activities. Alongside the updated Law on Telecommunications set to take effect on July 1, 2024, allowing complete foreign investment in data center services, Vietnam is becoming more accessible to international entities.
Vietnam's data center expansion is driven by the worldwide transition to AI, IoT, 5G, blockchain, and innovative cloud computing models. Located strategically close to international subsea cables, the cities of Hanoi, HCM City, Da Nang, and Bac Ninh province are emerging as key data center hubs due to superior bandwidth connectivity.
Experts believe that enhanced connectivity, reliable power, and supportive policies could position Vietnam as Southeast Asia’s emerging data hub in 5 to 10 years. In the age of AI and data, the nation can not only provide digital services but also transform the worldwide data center environment.