Google is reportedly considering constructing a “hyperscale” data center near Ho Chi Minh City, marking the primary investment in Vietnam by a serious U.S. tech company. The move is being fueled by rapid growth in cloud customers and the country’s growing digital economy.
The hyperscale data center is the biggest and strongest within the industry, providing massive computing, storage and networking power while using as much energy as a big city. According to real estate consultancy Jones Lang LaSalle, a 50 MW hyperscale data center in Vietnam is estimated to cost $300 million to $650 million.
If Google makes the investment, the information center might be operational by 2027, which might have a big impact on Vietnam’s digital infrastructure. Internal discussions on the project are ongoing.
Google’s expansion within the region
Google previously had only one data center in Southeast Asia, positioned in Singapore. The country was chosen for its “ideal combination” of reliable infrastructure, a talented workforce and a transparent, business-friendly regulatory environment. Google even increased its investment by $5 billion to expand its data center and cloud facilities in Singapore, and the expansion was accomplished in June.
Meanwhile, Malaysia is about to hitch Google’s data center network with an initial investment of $2 billion. It shall be the primary Google data center and Google Cloud region within the country, it was announced in May.
Vietnam’s Game Changer to Drive Data Center Investment
Vietnam is playing catch-up within the race to draw data center investment in Southeast Asia. Infrastructure challenges reminiscent of unreliable power and slow web connections have long been obstacles.
However, a breath of fresh air has include the passage of a brand new law that opens the doors wider for foreign investors to totally own data center corporations within the country. This daring move is predicted to rework Vietnam right into a promising tech investment destination.
Google’s takeover of Vietnam
Amid regulatory reforms aimed toward attracting foreign investment, Google has opened a representative office in Vietnam and hired dozens of execs, including engineers and marketing specialists. The recent team goals to enhance local services and support the country’s digital transformation.
At the launch of “Building Viet Nam’s AI Future” in July, Google Asia-Pacific’s Marc Woo predicted that Vietnam’s digital economy could grow as much as 11-fold by 2030. Google can also be partnering with the National Innovation Center to supply 40,000 scholarships in various courses, including artificial intelligence (AI).
