Vietnam's data centre server market forecast to reach $693 million by 2029

Research and Markets's latest report released on October 9 reveals that the market's growth is being driven by increasing data storage needs, the expansion of cloud computing, and the rise of big data analytics. Businesses across various sectors rely on data centres for their IT infrastructure, making this market crucial for the digital economy. Emerging trends such as edge computing, AI integration, and sustainability initiatives are also influencing the market's evolution, shaping its future dynamics.

The increasing adoption of cloud computing services is a primary driver of the market. Cloud computing offers scalable and flexible IT solutions, allowing businesses to manage and store data remotely rather than investing in on-premises infrastructure. In Vietnam, both enterprises and smaller businesses are progressively moving towards cloud-based solutions to leverage the benefits of cost-efficiency, scalability, and accessibility.

As the demand for cloud services rises, so does the need for robust data centre infrastructure to support these services. Data centres are essential for hosting cloud servers, which handle the vast volumes of data generated and processed by cloud applications.

Research and Markets noted that major global cloud service providers, including Amazon Web Services (AWS), Microsoft Azure, and Google Cloud, are expanding their presence in Vietnam, driving the need for local data centres to ensure low-latency access and comply with data sovereignty regulations. Moreover, the Vietnamese government has been promoting digital transformation and the development of IT infrastructure, including data centres.

This support includes policy frameworks and incentives designed to encourage investment in data centre facilities. As businesses increasingly rely on cloud services, the demand for data centre servers that can support these cloud environments continues to grow.

The exponential growth in data consumption and the increasing use of big data analytics are significantly fuelling Vietnam's data centre server market. As individuals and businesses generate more data through digital interactions, online transactions, and Internet of Things devices, the need for data storage and processing capabilities escalates. Big data analytics, which involves analysing large datasets to uncover insights and trends, requires substantial computing power and storage resources.

In Vietnam, the expansion of digital services and e-commerce has led to a surge in data generation. Companies across various sectors, including retail, finance, and telecommunications, are leveraging big data analytics to gain competitive advantages, optimise operations, and enhance customer experiences. This surge in data-driven activities necessitates advanced data centre servers capable of handling and processing large volumes of information efficiently.

Additionally, the rise of AI and machine learning (ML) applications further amplifies the demand for high-performance servers in data centres. AI and ML require significant computational resources to train models and process data, driving the need for more powerful and efficient data centre infrastructure.

The market for data centers is predicted to experience a surge in Vietnam in the coming years, with major investments from global players to capitalise on the booming demand for AI products and services.

Alphabet Inc's Google announced on September 30 that it will invest 1 billion USD in Thailand to build a data centre and cloud region to meet growing cloud demand and support artificial intelligence (AI) adoption in Southeast Asia.

With the lowest average cost of construction and land prices in the region for data centres, along with a prime geographical location, Vietnam is an emerging market for such ventures.