Vietnam Data Centre Server Market Outlook to 2030

Vietnam Data Centre Server Market Overview

• The Vietnam Data Centre Server Market is valued at USD 405 million, with growth observed over the past five years. This expansion is primarily driven by the rapid adoption of cloud computing services and the digitization initiatives promoted by both public and private sectors. Increasing data storage needs, driven by the expansion of e-commerce and financial sectors, have led to a heightened demand for efficient data centers.

• Key regions driving the market include Ho Chi Minh City and Hanoi, primarily due to their developed infrastructure, strategic locations, and the high concentration of business operations in these cities. Both cities are home to major data centers serving various industries, which has made them pivotal to the market's growth. The proximity to other Southeast Asian tech hubs also facilitates growth, attracting investments from global data center providers.
• The Vietnamese government launched the National Digital Transformation Program, targeting digital transformation across multiple sectors by 2025. In 2024, the program received funding of over VND 2,500 billion, with specific allocations for the expansion of data centers. This initiative supports the growth of data center infrastructure by encouraging private sector investment in server technology.

Vietnam Data Center Server Market Segmentation

By Server Type: The market is segmented by server type into rack servers, blade servers, tower servers, and micro servers. Rack servers hold a dominant position in this category due to their compact, scalable design, which is ideal for large-scale data centers where space optimization is critical. Rack servers are widely preferred for their flexibility, which allows for quick deployment, and easy upgrades, making them suitable for high-density computing environments.

By Data Centre Type: The market is divided by data center type into enterprise data centers, colocation data centers, hyperscale data centers, and edge data centers. Colocation data centers have emerged as a dominant segment in recent years due to the cost-efficiency they provide to companies by offering shared infrastructure. This model has become particularly attractive to businesses looking to reduce capital expenditures associated with data management, as colocation centers provide ready-made infrastructure with high levels of security and connectivity.

Vietnam Data Center Server Market Competitive Landscape

The market is dominated by a few major players, including well-established global companies like Dell Technologies, Hewlett Packard Enterprise, and Lenovo. These companies maintain a strong market presence due to their reputation for reliable products and extensive support networks.

Vietnam data Center Server Market Analysis

Market Growth Drivers

• Expansion of Digital Economy and E-commerce: Vietnams digital economy is growing at a rapid pace, with digital transactions reaching over 450 million annually as of 2024. The increased reliance on online platforms for services and commerce has resulted in a surge in data generation and processing needs. The Vietnamese government estimates that the country's e-commerce market, driven by local and international investments, is set to exceed VND 200 trillion by 2025, pushing the demand for data centers that require advanced server infrastructure to handle the increased volume of transactions.
• Increase in Cloud Service Adoption: The Vietnamese cloud services market has witnessed substantial growth, with around 10,000 enterprises adopting cloud solutions as of 2024. Companies are increasingly migrating to cloud platforms for cost-efficiency and scalability, necessitating more data centers equipped with high-performance servers. Government-backed cloud service adoption initiatives, like the National Digital Transformation Program, aim to support this trend, which is expected to require data centers with servers capable of managing millions of gigabytes of data flow.
• Demand for Edge Computing in Industrial Applications: With manufacturing and industrial operations increasingly relying on IoT-enabled solutions, the need for data centers supporting edge computing is rising. In 2024, an estimated 50,000 industrial sites across Vietnam rely on IoT technologies, demanding faster data processing at localized data centers. This has led to investments in edge server infrastructure to meet the data latency requirements of industrial sectors, especially in key cities such as Hanoi and Ho Chi Minh City.

Market Challenges

• Electricity Demand and Reliability Concerns: Data centers are power-intensive, and in 2024, the Vietnamese data center sector consumed over 500 million kWh annually. With the countrys grid stability under pressure, especially during peak hours, ensuring reliable energy for data centers remains a significant hurdle. Frequent power fluctuations in key regions like Northern Vietnam impact server performance, causing data latency issues and leading some operators to invest in costly backup power solutions.
• Shortage of Skilled IT Professionals: Vietnam faces a talent shortage in the IT sector, with only 50,000 skilled data center professionals available as of 2024. This number is insufficient to meet the demands of a growing data center industry. The shortage affects server maintenance, cybersecurity, and data management capacities, posing a barrier to the smooth operation of advanced data centers that require continuous and expert monitoring.

Vietnam Data Center Server Market Future Outlook

The Vietnam Data Centre Server industry is projected to experience robust growth in the coming years, driven by rising data storage demands, continued adoption of cloud computing, and support for green and energy-efficient data centers.

Future Market Opportunities

• Growth in Hyperscale Data Centers: Over the next five years, Vietnam is expected to witness the construction of hyperscale data centers, with plans to accommodate over 100,000 servers per facility by 2029. These centers will cater to the demands of cloud service providers and multinational companies, supporting high data volumes and reducing latency for local users. The trend aligns with Vietnams aim to become a regional data hub, especially for Southeast Asia.
• Increased Adoption of AI-Optimized Servers: By 2029, the data center market in Vietnam will see a rise in AI-optimized servers designed to handle machine learning and deep learning workloads. As AI applications proliferate across sectors like e-commerce and manufacturing, these servers will be essential for processing the large data volumes generated by AI algorithms.