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Viettel builds Vietnam’s first hyperscale data center

Viettel currently leads Vietnam’s data center market, ahead of VNPT, FPT, and CMC Telecom, following the new hyperscale project in the southern metropolis of Ho Chi Minh City.

THE HANOI TIMES — Viettel Group, the Vietnamese military-run telecom firm, on April 23 began construction of its high-tech data and R&D center in Ho Chi Minh City's Cu Chi District, marking a major step forward in the development of Vietnam's digital infrastructure.

The four-hectare data center in the Tan Phu Trung Industrial Park would require 140 MW for 10,000 racks. When completed, it will be Vietnam's first hyperscale data center, comparable in size and technology to the world's leading facilities.

The data center meets Uptime Tier III standards with 10 kW per rack, 2.5 times the Vietnamese average, with some racks consuming up to 60 kW for large-scale artificial intelligence (AI).

The groundbreaking ceremony of Viettel's High-Tech Data and Research & Development Center in Ho Chi Minh City on April 23. Photo: Viettel

To meet this demand, Viettel will deploy advanced cooling solutions and a smart management system powered by proprietary AI technology.

The first phase is scheduled to come online in Q1 2026, with full completion expected by 2030.

The new facility will be Viettel's 16th data center, adding to its 15 facilities in Hanoi, Ho Chi Minh City, the central coastal city of Danang, and the southern province of Binh Duong. The military group plans to expand to 20 centers nationwide by 2030.

Speaking at the groundbreaking ceremony, Vo Van Hoan, Vice Chairman of the Ho Chi Minh City People's Committee, emphasized the strategic importance of the project, describing it as one of the largest and most advanced in Southeast Asia.

He noted that the facility will support the city's ambition to become a smart urban hub and a national leader in data-driven economic growth and sustainable development.

With international-grade specifications, Hoan believed the center would become a strategic data transit point, attracting global tech giants like Microsoft, Google, and Amazon to invest and operate in Vietnam. The center is also expected to enhance Vietnam’s global connectivity appeal as a regional digital investment destination.

"This hyperscale data center is not only a strategic milestone for Viettel, but also a powerful catalyst for Ho Chi Minh City's smart city and digital government ambitions," said Hoan. "It will accelerate the deployment of advanced technologies such as AI, 5G, cloud computing, IoT, blockchain, cybersecurity, and big data," he added.

Tao Duc Thang, Chairman and CEO of Viettel, described the project as a cornerstone of Viettel's digital infrastructure vision, highlighting it as part of a comprehensive ecosystem where data is securely stored, transmitted, processed, and protected.

Rendered image of the new data center.

Viettel currently leads the domestic data center market, followed by VNPT, FPT, and CMC Telecom, according to VNDirect.

As of Q1 2024, Savills Vietnam reported that Vietnam hosts 33 data centers with 48 service providers, mainly concentrated in Hanoi and Ho Chi Minh City, with an estimated total capacity of 80MW.

Savills Vietnam also highlighted that data center investments in emerging markets such as Vietnam and India result in returns of 9.5%-10%, compared to the average 5% in Tier 1 markets such as Seoul, Tokyo, Bangkok, and Singapore. This profitability has positioned Vietnam as an attractive destination for international technology investors.

In Ho Chi Minh City, the real estate consultancy noted the presence of 13 operational data centers, with rising demand for industrial land to accommodate development.

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