Investing in a Data Center in Vietnam
Data centers in Vietnam are seeing an increase as the economy improves and more businesses embrace technology to improve their operations. The industry is in its infancy and infrastructure needs to be able to grow quickly to meet the demand. It’s also vital for service providers to ensure stable power supply and to have a strong understanding of the country’s complex regulatory landscape.
The country had strict rules on foreign ownership of cloud and data companies, but this changed this week. The new Law on Telecommunications eliminated the 49% cap for foreign ownership and allowed the full ownership of data as well as cloud companies by foreign investors. This is a positive change for the industry since it will boost foreign investment and improve tech capabilities in the country.
Google is one company which is profiting from this policy shift. A source familiar with the plans has revealed that Google is looking into the possibility of a “hyperscaled” data center in Ho Chi Minh City. The source did not disclose the size of the investment. It could be a major boost to the industry of data centers in Vietnam. It would be the first time a big U.S. tech company made an investment in Vietnam, as large data centers tend to prefer to locate their facilities in countries that are not as affluent due to security concerns and the high operating costs.
Alibaba the Chinese company, is also building data centers in Vietnam. This is to conform to local laws that require businesses to keep local information. It currently uses data centers owned by telecommunications firms Viettel and VNPT to meet the requirement.
The country is a hot spot for cloud service providers, with Ho Chi Minh City and Hanoi both becoming thriving data center hubs. Several international operators, including NTT Global Data Centers, Edge Centres and STT Global Data Centers have invested heavily in the region.
With its huge workforce, competitive pricing when compared to other countries, and its supportive government policies, Vietnam is a good option for companies looking to invest in data centers. As the market expands, companies must be aware of the risks and rewards to maximize their profit.
Data centers consume a lot of energy. To meet the growing demand, providers need to have the appropriate infrastructure. This includes ensuring a robust and reliable power supply, as well as ensuring that the environment is secure for storage of data, and ensuring secure connectivity. These concerns can be overcome with the proper strategy and implementation, but they must be considered against the potential rewards that investing in this growing sector could bring. In Vietnam for instance, the cost of building the data center of 50 megawatts can be anywhere from $300 million to $650 million. This is a significant portion of any company’s IT budget and it’s crucial to consider the advantages and disadvantages of the investment before making a decision. If you require assistance with your data center project, get in touch with us for more details.
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