Market Overview

The Vietnam Data Center Colocation Market reached a size of USD 290.00 Million in 2024. It is projected to grow at a CAGR of 10.96% during the forecast period 2025-2033, reaching USD 739.43 Million by 2033. Growth is driven by enhanced regulatory frameworks allowing full foreign ownership, accelerated cloud adoption and digital transformation across sectors, and significant infrastructure expansion by major service providers.

Study Assumption Years

• Base Year: 2024
• Historical Years: 2019-2024
• Forecast Period: 2025-2033

Vietnam Data Center Colocation Market Key Takeaways

• The Vietnam data center colocation market size was USD 290.00 Million in 2024.
• The market is expected to grow at a CAGR of 10.96% during 2025-2033.
• The projected market size by 2033 is USD 739.43 Million.
• Enhanced regulatory frameworks permit full foreign ownership of data centers in Vietnam, implemented in July 2024.
• Cloud adoption and digital transformation are accelerating demand, with the ICT industry revenue reaching US$165.9 billion in 2024.
• Infrastructure expansion includes greenfield development and acquisitions focused in Hanoi, Ho Chi Minh City, and Binh Duong Province.
• Major operators are upgrading facilities with advanced cooling, renewable energy, and supporting next-generation workloads.

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Market Growth Factors

Enhanced Regulatory Framework and Foreign Investment Liberalization

The Vietnam data center colocation market growth is substantially driven by transformative regulatory reforms. In July 2024, the government enacted a law enabling full foreign ownership of data center facilities, removing prior restrictions. This shift has attracted significant foreign investment inflows and simplified licensing procedures, boosting sector appeal. The updated framework also enforces data localization compliance and cybersecurity standards aligned with international best practices, enhancing Vietnam's competitiveness for multinational corporations requiring secure data storage options.

Cloud Adoption and Digital Transformation Acceleration

Vietnam's rapid digitalization fosters extensive demand for colocation services as enterprises increasingly adopt cloud-based infrastructures. The Ministry of Information and Communications reported ICT industry revenue of VND 4,244 trillion (US$165.9 billion) in 2024, up 13.2% from 2023, reflecting widespread digital technology integration. Sectors such as financial services, healthcare, education, and government are key drivers. The COVID-19 pandemic further accelerated this trend, increasing reliance on remote working and digital services, thereby expanding the need for secure, scalable data center infrastructure.

Infrastructure Expansion and Capacity Development

Significant investments by leading market players are fueling infrastructure expansion in Vietnam’s data center colocation market. New and upgraded facilities are concentrated in metropolitan hubs—Hanoi, Ho Chi Minh City, and Binh Duong Province—to enhance connectivity and service delivery. Developments feature advanced cooling technologies, renewable energy integration, and high-density computing capabilities designed for next-generation workloads. Expansion encompasses both greenfield projects and acquisitions, creating a competitive market that benefits customers through improved service and competitive pricing.

Market Segmentation

Type Insights:

• Retail Colocation
• Wholesale Colocation

The report provides a detailed breakup and analysis based on type, focusing on both retail and wholesale colocation segments.

Organization Size Insights:

• Small and Medium Enterprises
• Large Enterprises

The market is analyzed by organization size, covering both small and medium enterprises and large enterprises.

End-Use Industry Insights:

• BFSI
• Manufacturing
• IT and Telecom
• Energy
• Healthcare
• Government
• Retail
• Education
• Entertainment and Media
• Others

The report details market segmentation by end-use industries, including BFSI, manufacturing, IT and telecom, and several other sectors.

Regional Insights:

• Northern Vietnam
• Central Vietnam
• Southern Vietnam

Comprehensive analysis is provided for these primary regional markets in Vietnam.

Regional Insights

The Vietnam data center colocation market is experiencing significant infrastructure growth concentrated in Northern Vietnam, Central Vietnam, and Southern Vietnam. Key metropolitan areas such as Hanoi, Ho Chi Minh City, and Binh Duong Province lead developments due to their strategic importance for connectivity and business operations. This regional focus supports the increasing demand for colocation services and infrastructure capacity across the country.

Recent Developments & News

• In April 2025, Viettel announced plans to build a High-Tech Data Center and R&D Complex in Tan Phu Trung Industrial Park, Ho Chi Minh City, marking its 16th data center.
• In May 2024, ST Telemedia Global Data Centers (STT GDC) entered a joint venture with Vietnam’s tech firm VNG Corporation to develop and manage data center facilities in Ho Chi Minh City, enhancing foreign investment in the sector.

Key Players

• Viettel
• ST Telemedia Global Data Centers (STT GDC)
• VNG Corporation

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