Viettel, a military-run telecom service provider, opened a new data center in Hoa Lac Hi-tech Park in Hanoi on April 10. This data center is one of the largest in Vietnam.
The new center has racks with three times more capacity than the average data center in Vietnam. Moreover, it is equipped with high-performance computer chips to support the development of artificial intelligence (AI). The data center has received various green certificates for energy management, environmental impact management, and labor hygiene. It is also the first data center in Vietnam committed to using renewable energy for 30% of its electricity consumption.
A New Growth Opportunity for Telecom
During the inauguration of the data center, Minister of Information and Communications, Nguyen Manh Hung, highlighted the importance of investing in data centers as a new growth opportunity for telecommunications service providers. He emphasized that data is a crucial resource for the digital economy, and the future wealth of a country depends on its data infrastructure. Hung believes that big data and its processing will become a major industry, and Vietnam needs to establish itself as a global digital hub.
Vietnam’s data center market is forecasted to achieve revenues of USD 1.83 billion by 2024, with network infrastructure emerging as the dominant sector, projected to reach a market volume of USD 1.27 billion in the same year. Anticipated to exhibit a compound annual growth rate (CAGR) of 7.01% from 2024 to 2028, revenue is expected to escalate, culminating in a market volume of USD 2.40 billion by 2028.
Data centers are crucial infrastructure components for accommodating the anticipated growth in Vietnam's Internet of Things (IoT) and data consumption market. With projected revenue estimated to soar to USD 4.09 billion by 2024, data centers play a pivotal role in supporting the increased demand for storage, processing, and management of IoT-generated data. As data consumption continues to escalate, data centers will be essential in ensuring seamless connectivity, efficient data handling, and reliable services for businesses and consumers alike, driving innovation and economic growth in Vietnam's digital ecosystem.
Viettel's Data Center Expansion Plan
Viettel's Chairman and General Director, Maj. Gen. Tao Duc Thang, mentioned that Viettel currently operates 230,000 servers, covering 81,000 sq.m of floor space, with 11,500 racks and 87MW of electricity—equivalent to a global data center. Viettel plans to invest an additional VND 10 trillion (USD 400.88 million) to expand the data center to 17,000 racks by 2025. Moreover, Viettel will invest a further VND 40 trillion to expand the data center to 34,000 racks by 2030.
All Viettel's data centers meet international standards. Notably, the Hoa Lac center is designed with maximum security measures, boasting a 5-layer physical security system. It is connected to all countries and five undersea fiber optic cable lines in different directions. Additionally, the data center’s operations are monitored remotely 24/7.
