Google is exploring plans to build a hyperscale data center near Ho Chi Minh City, marking a potential first major investment by a U.S. tech giant in Vietnam’s data infrastructure.
Bollywood Fever: Alphabet’s Google is reportedly considering constructing a large hyperscale data center near Ho Chi Minh City, Vietnam, according to a source familiar with the plans.
This would mark the first significant investment by a major U.S. technology company in Vietnam’s data infrastructure.
The proposed data center, which could be operational by 2027, would support Google’s expanding domestic and international cloud services in Vietnam, a country with a rapidly growing digital economy.
While the exact size of the investment remains undisclosed, the construction of a hyperscale data center with a power capacity of 50 megawatts (MW) could range from $300 million to $650 million, based on industry estimates.
The potential investment could significantly boost Vietnam’s appeal as a destination for foreign capital in the data center sector, an area where the country has lagged behind regional rivals like Singapore, Malaysia, and Thailand due to patchy infrastructure and less attractive investment incentives.
Google’s interest in Vietnam is motivated by the country’s robust growth in digital services and its expanding user base for platforms like YouTube.
Despite challenges such as occasional power shortages and reliance on aging subsea internet cables, Vietnam remains one of the fastest-growing markets for Google’s services.
Currently, the largest data center operators in Vietnam are IDC Becamex and VNPT, both state-owned enterprises.
However, foreign players like Alibaba are also reportedly exploring opportunities in the country, indicating growing interest in Vietnam’s digital infrastructure.
In a strategic move, Google has opened a representative office in Vietnam and is actively hiring engineers, marketing experts, and other professionals to support its operations.
The company has also launched initiatives such as offering 40,000 scholarships for AI courses and funding AI startups in Vietnam, signaling its commitment to the country’s digital transformation.
Google’s potential investment in a data center would come at a time when Vietnam is reforming regulations to make the country more attractive to foreign investors.
Recent legislative changes allow overseas data center operators to retain full ownership, addressing previous concerns about foreign ownership and data localization requirements.
With Vietnam’s digital economy on the rise, Google’s consideration of a hyperscale data center could be a pivotal step in enhancing the country’s data infrastructure and attracting further global tech investments.
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