Vietnam Data Center Storage Market Report and Forecast 2024-2032

Vietnam Data Center Storage Market Size

The Vietnam data center storage market is projected to grow at a CAGR of 5.10% between 2024 and 2032.

Vietnam Data Center Storage Market Outlook

• A National Data Center Project, under the Vietnamese government, aims to construct new data centers, and is expected to be finished by 2025, boosting the demand for data center storage.

• Vietell Group announced that it plans to build megacenters in Ho Chi Minh City and Hanoi by 2030 with a total capacity of around 450 MW.

• Alibaba announced in 2024 that it aims to build a data center in Vietnam for data storage in compliance with regional standards.

Vietnam Data Center Storage Market Growth

The rising integration of high-end technologies to boost the efficiency of data storage systems, the surge in the volume of data in the BFSI and telecom sector, and the increased adoption of cloud computing are some of the prominent market drivers. There is a rising demand for data storage solutions that can seamlessly integrate both on-premise and cloud environments to offer a scalable, flexible, and secure storage solution. This proves to be a prominent driver in influencing the Vietnam data center storage market dynamics and trends.

The rise of edge computing has boosted the market development and has fuelled the demand for localised storage that is tailor-made for edge environments, offers low latency, and can boost the operational performance of applications that heavily rely on edge computing. Moreover, a crucial trend in the market is the incorporation of ransomware protection in the storage network, which not only recovers the data affected by the cyber-attack but can also monitor data storage in real time to identify any potential threats and tackle them immediately.

Key Trends and Recent Developments

Growing demand for digital services, increased support and regulations from the government, and growth in sustainability initiatives are boosting the Vietnam data center storage market revenue

July 2024

Vietnam Opens Doors to Foreign Data Center Investors. Vietnam has introduced new Law on Telecommunications, eliminates foreign ownership restrictions for data and cloud providers, a stark contrast to the 49% cap on foreign investment in many other Vietnamese industries.

May 2024

Alibaba to build Vietnam data center to follow local storage law. The company plans to build a data center in Vietnam to store data locally in compliance with legal requirements, while it currently relies on government-owned facilities.

October 2023

Since data centers and data center development are becoming more and more important in Vietnam, the country’s National Data Center Project has been approved by Resolution 175/NQ-CP. This is in line with the growing importance of data collection and storage in Vietnam. 

October 2023

Vietnam Posts and Telecommunications Group (VNPT) has launched a new data center outside Hanoi. The state-owned telco this week announced the launch of the 23,000 sqm (247,570 sq ft) facility – known as VNPT IDC Hoa Lac – in the Hoa Lac High-Tech Park in the Thach That district, Ha Tay province.

Increasing Demand for Digital Services

The demand for data centers in Vietnam is also being driven by the growth of cloud computing, the increasing presence of foreign cloud providers, and increased investments from domestic companies. As of October 19, 2023, Vietnam has approximately 77 million internet users, representing 79.1% of the population, which boosts the need for digital services and data centers. Additionally, the rising affordability of smartphones has led to widespread ownership, enabling millions to access the internet. The expansion of high-speed internet networks has further facilitated online activities, contributing to the growth of the Vietnam data center storage market.  

Increase in government support and regulations

The Vietnamese government requires that both local and foreign providers of telecommunications, internet, and value-added services in cyberspace store specific types of data within Vietnam. This includes personal data of users, data generated by users, and information about user relationships. The updated Telecommunications Law, effective July 1, 2024, is designed to regulate digital infrastructure and service providers, encompassing data centers, cloud computing, and over-the-top (OTT) communications. It also allows for 100% foreign ownership in the data center sector and enables the provision of these services across national borders.

Growing investment in related infrastructure

Vietnam's leading telecom companies are making substantial investments in expanding their data center infrastructure. This strategic move is driven by the rapidly growing demand for data storage and processing capabilities within the country. Major players are building large-scale data centers in key cities such as Ho Chi Minh City and Hanoi. This significant investment demonstrates the data center storage demand growth in the country.

Rapid introduction and adoption of sustainability initiatives

Data centers are actively becoming more energy efficient. They're using innovative cooling methods like liquid cooling to drastically reduce energy consumption. Additionally, there's a growing trend towards powering data centers with renewable energy sources like solar power. Using less energy-hungry servers is another way data centers are becoming greener. Many data center operators are also adopting renewable energy sources to power their facilities, reducing reliance on traditional grid electricity.

Vietnam Data Center Storage Industry Segmentation

“Vietnam Data Center Storage Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Storage Technology

• Network Attached Storage (NAS)

• Storage Area Network (SAN)

• Direct Attached Storage (DAS)

• Others

Market Breakup by Storage Type

• Traditional Storage

• All-Flash Storage

• Hybrid Storage

Market Breakup by End Use

• IT and Telecom

• BFSI

• Government

• Media and Entertainment

• Others

Market Breakup by Region

• Southeast

• Red River Delta

• Mekong River Delta

• South Central Coast

• Others

Vietnam Data Center Storage Market Share

Based on storage technology, the market is divided into Network Attached Storage (NAS), Storage Area Network (SAN), and Direct Attached Storage (DAS), among others. The storage area network (SAN) occupies a significant market share as it ensures data access across all networks. The robust and flexible nature of SAN also makes it a viable asset in complex storage solutions, ensuring that the needs of modern data centers are met.

Leading Companies in the Vietnam Data Center Storage Market

The market players are focused on research and development for the advancement of storage solutions.

• Dell Inc.

• Fujitsu Ltd.

• Intel Corp.

• Oracle Corp.

• Lenovo Group Ltd.

• Seagate Technology Holdings Plc

• Kingston Technology Company, Inc.

• Western Digital Corp.

• Infortrend Technology Inc.

• NetApp, Inc.

• Others

Key Highlights of the Report

Vietnam Data Center Storage Market Report Snapshots

Vietnam Data Center Storage Market Size

Vietnam Data Center Storage Market Growth

Vietnam Data Center Storage Market Share

Vietnam Data Center Storage Companies