The Vietnam Data Center Market is poised for rapid expansion, with the sector valued at USD 1.04 billion in 2025 and projected to reach USD 3.18 billion by 2031, growing at a compound annual growth rate (CAGR) of 20.48%. This surge is driven by Vietnam’s emergence as a key regional hub for cloud computing and artificial intelligence infrastructure. As of September 2025, the country’s data center pipeline—encompassing under-construction, announced, and planned facilities—exceeds 500 MW, placing Vietnam among the top emerging data center markets in Asia. Ho Chi Minh City remains the dominant center for data center development, hosting 13 existing and 12 upcoming facilities. The city is attracting advanced infrastructure, hyperscale data centers, and dedicated cloud regions, making it a focal point for digital infrastructure investment. One of the most compelling factors driving growth is Vietnam’s cost advantage. Construction costs for data centers in the country range from $6 million to $8 million per megawatt, significantly lower than in regional peers like Singapore, Malaysia, and Indonesia. This affordability enhances Vietnam’s appeal for both domestic and international investors. A major regulatory catalyst is the implementation of Vietnam’s Personal Data Protection Law effective January 1, 2026. The law mandates that personal data of Vietnamese users be stored locally, with violations punishable by fines of up to 5% of annual revenue. This regulation is expected to significantly increase demand for local data center capacity to ensure compliance. The market features a mix of established and emerging players. Leading colocation providers include CMC Telecom, FPT Telecom, Hanoi Telecom (ECODC), NTT DATA, ST Telemedia Global Data Centres, Viettel IDC, VNPT, and VNTT. New entrants such as Epsilon Telecommunications, Gaw Capital, Infracrowd Capital, and Siagon Asset Management are also making inroads. In November 2025, Kinh Bac City Development Holding Corporation (KBC) signed a Memorandum of Understanding with Accelerated Infrastructure Capital (AIC) and VietinBank to develop a $2 billion AI-focused data center complex in Ho Chi Minh City, funded through equity and commercial loans. This project underscores growing investor confidence. Vietnam is increasingly being positioned as a strategic destination for hyperscalers. Early indications suggest that Google and Alibaba are planning to build their first hyperscale data centers in the country, with operations expected to begin by 2027. The market is segmented across key infrastructure areas: IT, electrical, mechanical, cooling systems, and general construction. Tier standards are also a critical consideration, with demand rising for higher-tier facilities that ensure reliability and uptime. The report offers comprehensive insights into market size, investment trends, power capacity, and revenue across cities. It analyzes investment patterns by colocation, hyperscale, and enterprise operators, providing detailed data on construction area (square feet) and power capacity (MW). It also includes a thorough assessment of vendors, including IT infrastructure providers, construction contractors, support infrastructure firms, and investors. The research covers key industry trends, growth drivers, challenges, and future opportunities. It includes a detailed analysis of market demand and supply dynamics, along with business overviews and product offerings of major players. This report is essential for investors, infrastructure providers, and technology firms seeking to understand Vietnam’s evolving data center landscape and capitalize on its rapid growth potential.