As the economy grows and more companies adopt new technology to streamline operations data centers in Vietnam are seeing a surge. However, the industry is in its nascent stages and infrastructure has to scale up quickly to meet the demand. It is also crucial for service providers to ensure stable power supply and to have a good knowledge of the nation’s complex regulatory landscape.
In the past, the country had strict rules on foreign ownership of cloud and data businesses, but that changed last week. The new Law on Telecommunications has eliminated the cap of 49% on foreign ownership. This allows international investors to control all cloud and data businesses. This is a great change for the sector as it will encourage foreign investment and improve tech capabilities in the country.
Google is one company which is profiting from this policy shift. A source close to these plans has said that Google is looking into a «hyperscaled» data center in Ho Chi Minh City. The venture which the source did not specify in terms of size, will be a major increase for the data center market in Vietnam. It would be the first time an enormous U.S. technology company invests in the country. Data centers with large capacity typically prefer to house their facilities in rival countries due to security concerns and high operating costs.
China’s Alibaba is another company that is building data centers in Vietnam to meet local laws requiring companies to store local data. To comply with this requirement, it currently uses data centres owned by telecommunications corporations Viettel and VNPT.
The country is a hot spot for cloud service providers and cloud service providers, with Ho Chi Minh City and Hanoi both becoming thriving data center hubs. Many international companies, including NTT Global Data Centers, Edge Centres and STT Global Data Centers have made significant investments in the region.
Vietnam is a great option for businesses that are looking to invest in data centers. Its abundant workforce and competitive pricing when in comparison to other countries and favorable government policies make it a great place to make that investment. But as the market grows, it’s crucial that players understand the risks and rewards of this lucrative industry in order to maximize their profits.
Data centers use a lot of energy and to meet the increasing demand, it is essential that providers have the appropriate infrastructure in place. This includes providing a reliable and durable power supply, making sure that the environment for data storage is safe, and providing secure connections. These issues can be resolved by the right planning and execution but they must be considered against the potential rewards that investing in this sector could bring. For example an IT data center with a capacity of 50 megawatts could cost between $300 million and $650 million to build in Vietnam. This is a significant chunk of any company’s IT budget and it’s essential to weigh the pros and cons of the investment prior to making a decision. Contact us for assistance with hangbinhdan.com bài viết your data center project.