Google Eyes Vietnam for First US Tech Giant Data Centre Investment
Google, part of Alphabet Inc., is considering establishing a large data centre in Vietnam. This would mark the first significant investment by a major US technology company in the Southeast Asian country. A source familiar with the matter revealed these plans, noting that the data centre could be built near Ho Chi Minh City, Vietnam’s economic hub in the south.
Potential Hyperscale Data Centre in Vietnam
Google is evaluating the possibility of setting up a “hyperscale” data centre, which represents the largest facilities in the industry. These centres typically consume as much power as a large city, making them a substantial investment. While the exact investment amount was not disclosed, industry estimates suggest that a hyperscale centre with a 50-megawatt (MW) capacity could cost between $300 million and $650 million.
The data centre, if approved, could be operational by 2027. However, the source indicated that Google has yet to finalise the decision, and internal discussions are ongoing.
Vietnam’s Growing Appeal for Tech Investments
Vietnam has struggled to attract significant foreign investment in data centres, largely due to infrastructure challenges. Issues such as occasional power shortages and outdated internet infrastructure have deterred global tech companies. However, the country’s expanding digital economy and the presence of a large number of Google Cloud clients, both domestic and international, are driving Google’s interest in the region.
Despite these challenges, Vietnam is one of the fastest-growing markets for YouTube, Google’s video-sharing platform, further highlighting the country’s potential.
Vietnam’s Data Centre Market and Regulatory Landscape
Currently, the major data centre operators in Vietnam are IDC Becamex and VNPT, both state-owned enterprises. Google’s potential investment could significantly alter the landscape, bringing Vietnam closer to its regional competitors like Singapore, Malaysia, and Thailand, which have already attracted substantial investments from global tech giants.
In May, Google announced a $2 billion investment in Malaysia for its first data centre and Google Cloud region in the country. Meanwhile, Vietnam has recently made regulatory reforms that could make it more attractive to foreign investors. The new laws allow full ownership of data centres by foreign companies, addressing a previous barrier to entry.
Google has already been expanding its presence in Vietnam by opening a representative office and hiring local talent. The company is also offering 40,000 scholarships for basic AI courses and substantial funding for AI startups in the country.
