Vietnam vs. Leading Countries in Data Center Infrastructure: A Strategic Comparison and Lessons for Vietnam

 

In the global landscape of data centre development, countries are increasingly competing on the basis of infrastructure quality, cost efficiency, connectivity, energy resources, and regulatory environment. According to a 2025 analysis of the top 10 countries powering data centres, the United States leads with an Overall Score of 147.04, driven by an exceptionally high Quality Score of 92.11, while countries such as India, Canada, and Brazil also demonstrate strong potential due to competitive cost structures and expanding markets. European hubs like France, Germany, Spain, and the UK showcase stable business environments and solid infrastructure, albeit at higher operational costs. Singapore and Australia offer strong connectivity and quality but face cost challenges relative to larger markets. This ranking reflects the mature balance between quality of infrastructure and operational cost necessary for modern data centre ecosystems.

 

In contrast, Vietnam’s data centre industry is still in a nascent but fast-growing stage. Government and industry reports indicate that Vietnam currently hosts 41 active data centres with a combined power capacity of approximately 221 MW as of 2025, spread across major cities like Ho Chi Minh City and Hanoi. Further growth projections estimate that total capacity could reach nearly 525 MW by 2025 and up to around 1,000 MW by 2030, reflecting the country’s ambition to expand its digital infrastructure footprint significantly. 

 

In comparison with leading global hubs, Vietnam’s current capacity remains modest. For context, hyperscale data centre facilities in countries like the U.S. often exceed hundreds of megawatts at a single site, while Vietnam’s largest hyperscale project — the Viettel IDC data centre in Ho Chi Minh City with a planned capacity of 140 MW — represents its first such high-capacity facility. This project is significant because it helps bridge the gap toward global scale infrastructure. 

 

Energy infrastructure also presents a comparative challenge. Top-ranked countries often boast abundant, reliable electricity supplies sourced from diversified and stable grids, which is a major contributor to their high quality scores. By contrast, Vietnam’s national grid continues to grapple with reliability constraints and high dependence on coal-fired power generation, which dominates the energy mix and risks volatility in supply. The government has initiated major programmes to boost power capacity — including renewable energy targets and potential nuclear power contributions — to support rising demand. However, these transitions will take time and sustained investment. 

 

Moreover, data centre developers globally benefit from established regulatory frameworks that streamline permitting, provide clear tax incentives, and ensure robust connectivity options. Vietnam’s regulatory environment is evolving but still experiences bureaucratic complexity that can slow project development. For example, recent policy discussions and telecommunications law updates aim to clarify foreign investment rules and incentivise infrastructure growth, but implementing these changes remains a work in progress. 

 

Despite these challenges, Vietnam’s strategic advantages are noteworthy. First, the country’s data centre construction costs are among the lowest in the Asia-Pacific region, a significant competitive edge for both domestic and international investors. Lower project costs can attract developers who view Vietnam as a cost-effective base for regional operations.  Furthermore, the rapid growth of the domestic digital economy — including over 80 million internet users and high IPv6 deployment — underlines strong internal demand for data storage, cloud computing, and digital services, which fuel the data centre market. 

 

Nevertheless, Vietnam must continue to elevate its value proposition to match the balanced strengths seen in top ranked global data centre destinations (such as quality infrastructure coupled with attractive cost profiles). To achieve this ambition, five strategic lessons can be distilled from comparative analysis:

 

1. Build Reliable and Diversified Power Infrastructure

Vietnam must accelerate investment in power generation and distribution to support round-the-clock data centre operations. Reliable electricity is a cornerstone of high-quality data centre performance and is a major factor in the success of top countries. Diversification into renewable energy sources — including solar, wind, and potentially nuclear — will reduce dependence on coal and enhance resilience. Government action under Power Development Plans and incentives for green energy adoption are necessary to underpin data centre growth. 

 

2. Streamline Regulatory and Investment Frameworks

Simplifying regulatory procedures and clarifying foreign investment rules can position Vietnam as an attractive destination for global hyperscale operators. Tax incentives, streamlined permitting, and clear data governance policies, aligned with international standards, will mitigate barriers that currently impede rapid scale-ups and foreign capital inflows. Proactive reform in telecommunications and digital infrastructure laws can reinforce confidence among large cloud and data centre providers. 

 

3. Foster Skills and Operational Expertise

Vietnam must invest in talent development tailored to the data centre ecosystem — from electrical and mechanical engineering to IT infrastructure and facility management. Partnerships with universities and targeted training programmes will address the shortage of skilled workers, enabling efficient operation and innovation within data centre facilities. Building a workforce capable of supporting world-class infrastructure is essential to compete with mature markets.

 

4. Embrace Sustainable and Green Data Centre Practices

The global push for sustainability is reshaping data centre benchmarks, with efficiency and environmental performance becoming strategic priorities. Vietnam’s push for green data centres — including renewable energy adoption and energy-efficient cooling systems — will differentiate its offerings. Incentives for renewable energy procurement by data centres, and integration of technologies like battery storage and waste heat reuse, can reduce carbon footprints and attract environmentally conscious investors. 

 

5. Leverage Regional Connectivity and Strategic Location 

Vietnam’s geographical proximity to major digital hubs in Southeast Asia — such as Singapore, Hong Kong, and Japan — presents an opportunity for it to serve as a regional data transit and edge computing hub. Investment in international subsea cable connections and robust network infrastructure will enhance latency-sensitive applications and link Vietnam into global digital flows. Strategic positioning as a gateway for data traffic in the ASEAN region can unlock further commercial potential.

 

While Vietnam’s data centre industry remains in early stages relative to global leaders in the United States, Europe, and parts of Asia, the country exhibits strong growth dynamics, competitive costs, and a rapidly expanding domestic digital economy. With targeted strategic efforts to bolster power infrastructure, regulatory clarity, talent development, sustainability standards, and regional connectivity, Vietnam can strengthen its position in the global data centre ecosystem and support the broader digital transformation of the national economy.