Vietnam Data Center Colocation Market - Supply & Demand Analysis 2026-2031

Vietnam data center colocation market is expected to grow at a CAGR of 27.71% from 2025 to 2031.

RECENT DEVELOPMENTS & NEWS IN THE VIETNAM DATA CENTER COLOCATION MARKET

• In November 2025, Kinh Bac City Development Holding Corporation (KBC), Accelerated Infrastructure Capital (AIC), and VietinBank collaborated to develop an AI-focused data center campus, with a planned capacity of 200 MW, in Tan Phu Trung Industrial Park.
• In June 2026, Foxconn partnered with Brookfield to develop up to 1GW of renewable energy and battery energy storage capacity in Vietnam under a long-term Power Purchase Agreement (PPA). The project will support Foxconn's expansion and accelerate clean energy adoption to meet rising industrial and digital power demand.

VIETNAM DATA CENTER COLOCATION MARKET TRENDS & DRIVERS

Rise in Automation & Digitalization Technology

Vietnam is accelerating digital transformation through the adoption of AI, cloud computing, automation, and advanced digital technologies across industries, driving demand for high-performance data center infrastructure.

AI adoption in Vietnam is still in its early stages; however, the government is actively promoting AI research and deployment through the National Strategy on Research, Development, and Application of Artificial Intelligence, aiming to establish Vietnam as a leading AI innovation hub in the ASEAN region by 2030.

The national AI strategy supports AI adoption across sectors such as agriculture, defense, digital economy, education, finance, healthcare, manufacturing, science & technology, and public services.

In May 2025, Viettel IDC partnered with KT to develop an AI-focused data center and GPU farm in Vietnam with an investment of around $94.5 million.

Kinh Bac City Development Holding Corporation (KBC), Accelerated Infrastructure Capital (AIC), and VietinBank signed a partnership agreement to develop a large-scale AI-enabled data center at Tan Phu Trung Industrial Park in Ho Chi Minh City.

Improvement in Connectivity VIA Submarine Cables

Vietnam currently has around six operational submarine cable systems that provide international connectivity and support the country's expanding digital economy. The development of approximately three upcoming submarine cable systems is expected to improve network redundancy, increase international bandwidth capacity, and strengthen Vietnam's attractiveness for cloud providers and colocation data center investments.

In August 2025, Vietnam launched the Vietnam-Singapore Terrestrial Network (VSTN), a 2,423.3-mile land cable from Da Nang to Singapore through Laos, Thailand, and Malaysia. It is owned by the Vietnam Posts and Telecommunications Group (VNPT).

INDUSTRY RESTRAINT

Power Availability and Outage Challenges

Reliable power infrastructure remains one of the key factors influencing data center site selection in Vietnam. Extreme weather events and submarine cable disruptions continue to pose operational challenges for digital infrastructure.

In September 2025, Typhoon Yagi caused widespread damage to northern Vietnam's power transmission network, disrupting electricity supply before restoration efforts recovered most of the affected 500kV, 220kV, and 110kV transmission lines.

In June 2025, the Asia Pacific Gateway (APG), Asia Africa Europe-1 (AAE-1), and Tata TGN Intra Asia submarine cables experienced partial and full outages, resulting in slower internet connectivity across Vietnam.

Vietnam continues to experience power supply constraints in several northern industrial provinces during periods of peak electricity demand, encouraging greater investments in grid expansion, renewable energy integration, and backup power infrastructure for mission-critical facilities such as data centers.

VIETNAM DATA CENTER COLOCATION MARKET SEGMENTATION INSIGHTS

INSIGHTS BY COLOCATION DEMAND

Based on the colocation demand by industry, in 2025, the cloud & IT sector dominated the colocation market in Vietnam, holding a market share of around 20%. This share is expected to increase in the coming years as several sectors continue to migrate their workloads to cloud platforms. Supporting this growth, Vietnam aims to achieve full adoption of cloud computing across all government agencies by 2031 as part of its strategy to advance the digital economy. Additionally, the country aims for 70% of businesses in Vietnam to use cloud computing services offered by domestic companies.

INSIGHTS BY COLOCATION REVENUE

Based on revenue, retail colocation dominated the market's total revenue in 2025. However, the contribution of the wholesale segment is projected to expand to nearly 47% by 2031. This transition is primarily driven by rising hyperscale deployments, increasing wholesale leasing activities, and continued cloud adoption.

The increasing development of hyperscale and AI-ready data centers by global cloud providers and infrastructure investors is expected to reshape Vietnam's colocation market. As hyperscale operators continue investing in large-scale facilities, demand for wholesale colocation capacity is expected to increase while supporting the country's long-term digital infrastructure growth.

WHAT'S INCLUDED?

• A transparent research methodology and insights on the colocation demand and supply aspect of the market.
• Market size available in terms of utilized white floor area, IT power capacity, and racks.
• Market size available in terms of Core & Shell vs. Installed vs. Utilized IT Power Capacity, along with occupancy%.
• A study of the existing Vietnam data center market landscape, with insightful predictions of data center market size during the forecast period.
• An analysis of the current and future colocation demand in Vietnam by several industries.
• The study on sustainability status in Vietnam.
• Analysis of current and future cloud operations in Vietnam.
• The snapshot of upcoming submarine cables in Vietnam.
• Snapshot of existing and upcoming third-party data center facilities in Vietnam.
  • Facilities Covered (Existing): 28
  • Facilities Identified (Upcoming): 22
  • Coverage: 4 Cities
  • Existing vs. Upcoming (White Floor Area)
  • Existing vs. Upcoming (IT Load Capacity)
• Data center colocation market in Vietnam.
  • Colocation Market Revenue & Forecast (2025-2031)
  • Retail Colocation Revenue (2025-2031)
  • Wholesale Colocation Revenue (2025-2031)
  • Retail Colocation Pricing along with Addons
  • Wholesale Colocation Pricing along with the pricing trends.
• An analysis of the latest trends, potential opportunities, growth restraints, and prospects for the colocation data center industry in Vietnam.
• Competitive landscape including market share analysis by the colocation operators based on IT power capacity and revenue.
• Vendor landscape of each existing and upcoming colocation operator based on existing/ upcoming count of data centers, white floor area, IT power capacity, and data center location.

The report includes:

• Colocation Supply (MW, Area, Rack Capacity)
• Colocation Demand (MW, Area, Rack Capacity) and by End-User (Cloud/IT, BFSI, etc.)
• Colocation Revenue (Retail & Wholesale Colocation Services)
• Competitive Scenario (Share Analysis by Revenue & MW Capacity)

KEY QUESTIONS ANSWERED:

1. What is the count of existing and upcoming colocation data center facilities in Vietnam?

2. How much MW of IT power capacity is likely to be utilized in Vietnam by 2031?

3. What factors are driving Vietnam data center colocation market?

4. Who are the new entrants in the Vietnam data center industry?