2 weeks ago
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Google is considering building a large data centre in Vietnam, marking the first such investment by a major U.S. technology company in the Southeast Asian nation. The proposed “hyperscale” data centre was likely to be located near Ho Chi Minh City, the country’s southern economic hub, although specific details about the investment size were not disclosed. This development would significantly boosted Vietnam’s appeal as a destination for major tech investments, as the country had struggled to attract such capital due to inadequate infrastructure.
Internal discussions were ongoing, and the data centre could potentially be operational by 2027. Google, however, declined to comment on the matter. Hyperscale data centres, which consume power equivalent to that of a large city, were among the largest in the industry. A centre with a 50-megawatt (MW) power consumption capacity could cost between $300 million and $650 million, according to estimates based on data from real estate consultant Jones Lang LaSalle.
Google’s interest in Vietnam was reportedly driven by its growing domestic and foreign cloud services clientele, as well as the country’s expanding digital economy. Vietnam has become one of the fastest-growing markets for YouTube, Google’s popular online video platform. Despite the strict cybersecurity regulations and challenges surrounding foreign ownership and data localisation, Google appeared undeterred, as evidenced by its decision to open a representative office in Vietnam and actively recruit engineers, marketing experts, and other professionals.
In contrast to Vietnam’s relatively nascent data centre industry, Southeast Asian neighbours like Singapore, Malaysia, and Thailand were far more advanced, having attracted substantial investments from global tech giants. Notably, Google announced in May that it would invest $2 billion in Malaysia to develop its first data centre and Google Cloud region in the country. Meanwhile, Vietnam has recently approved reforms allowing full ownership by overseas data centre operators, potentially making the country more attractive to foreign investors.
Google’s ongoing commitment to Vietnam was further demonstrated through initiatives such as offering 40,000 scholarships for basic AI courses and providing $350,000 in funding to 20 selected AI startups. The company also maintained a significant network of suppliers in Vietnam, responsible for assembling its products, including Pixel smartphones.
Nneoma Udensi
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