As the economy expands and more companies adopt new technologies to streamline their operations, data centers in Vietnam are seeing a surge. But the sector is still in its nascent stages and infrastructure has to expand quickly to meet the demand. It’s important that providers ensure uninterrupted power supply, and understand the complex regulatory framework of the country.
In the past, the country had strict regulations 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 permits international investors to control all cloud and data businesses. This is a positive change for the industry since it will increase foreign investment and increase tech capabilities in the country.
One company taking advantage of the policy shift is Google, which is weighing https://hangbinhdan.com/ tìm hướng dẫn công nghệ này the possibility of building a “hyperscale” data center in Ho Chi Minh City, a source close to the plans told. The investment however, which the source did not specify in terms size, could be a significant boost for the data center market in Vietnam. This would be the first time a large U.S. technology company invests in the country. Data centers with large capacity typically prefer to build their facilities within rival nations due to security concerns and the high operational costs.
Alibaba China, a Chinese firm is also constructing data centers in Vietnam. This is to ensure compliance with local laws that require companies to store local information. To fulfill this requirement, Alibaba currently has data centers owned by telecommunications companies Viettel and VNPT.
The country is a booming spot for cloud service providers and cloud service providers, with Ho Chi Minh City and Hanoi both gaining momentum as data center hubs. Numerous international operators, including NTT Global Data Centers, Edge Centres and STT Global Data Centers have invested significant amounts in the region.
With its huge workforce, competitive pricing compared to other countries, as well as supportive government policies, Vietnam is a good option for companies seeking to invest in data centers. As the market expands, players must understand the risks and rewards to maximize the return.
Data centers use a lot energy. To meet the rising demand, companies need to have the appropriate infrastructure. This includes making sure that they have a reliable and sturdy power supply, making sure that the data storage environment is secure, and providing secure connections. Although these issues can be overcome with the proper planning and execution, they should be evaluated carefully against the potential rewards of investing in this growing industry. For example the cost of a data center that has 50 megawatts of power could cost between $300 million and $650 million to construct in Vietnam. This is a significant chunk of any company’s IT budget, and it’s important to weigh the pros and cons of the investment before making the decision. Contact us if you need assistance with your data center project.