According to sources, U.S. tech giant Google is considering establishing a “hyperscale” data center near Ho Chi Minh City, the economic hub of southern Vietnam. This would be Google’s first such investment in a Southeast Asian country. The project is expected to bring significant technological and economic benefits to Vietnam, particularly in the rapidly expanding digital economy.
According to analysis by real estate consultancy JLL, the construction cost of a 50 MW hyperscale data center could range between $300 million and $650 million. This investment is expected to significantly enhance Vietnam’s appeal in the tech industry and provide stronger support to the local cloud services market.
Google Accelerates Southeast Asia’s Digital Transformation
While Google has yet to announce a formal investment decision, sources say discussions are ongoing, and the data center could be completed as early as 2027. A Google spokesperson declined to comment on the plan. However, based on job postings on LinkedIn, the company has already been recruiting dozens of engineers, marketing experts, and other professionals. A Google spokesperson stated: “We now have a team on the ground to better serve our advertising clients in Vietnam and support the country’s digital transformation.”
Tech Giant Investment Boom in Southeast Asia
In recent years, Southeast Asian countries have attracted continuous investment from global tech giants due to tax incentives and labor cost advantages. Last December, Nvidia partnered with local tech firms to develop AI infrastructure; Apple CEO Tim Cook stated in April this year that the company is considering setting up a manufacturing plant in Indonesia; Microsoft CEO Satya Nadella announced in May this year that the company would invest $2.2 billion in Malaysia and $1.7 billion in Indonesia to build cloud services; Amazon announced plans in May this year to invest $9 billion in Singapore, $5 billion in Thailand, and $6 billion in Malaysia; Google announced in May this year that it would invest $2 billion in Malaysia to develop its first data center and Google Cloud region in the country.
Challenges and Opportunities Facing Vietnam
Hyperscale data centers are the largest facilities in the industry, with power consumption typically matching that of large cities. Industry experts note that although the demand for digital services in Vietnam, a country with a population of 100 million, is steadily increasing, foreign investors in this field have largely avoided the country due to occasional power shortages, a lack of attractive investment incentives, and weak internet infrastructure, which relies on a small number of aging undersea cables.
Vietnam has strict cybersecurity regulations and has long clashed with foreign tech companies over data storage within the country. However, Vietnam’s reforms approved in November allow foreign data center operators to retain full ownership.
Google’s Strategic Intent
Google’s plan to invest in building a data center in Vietnam is not only to meet the growing local demand for cloud services and digital needs but also aligns with its global strategic layout. In recent years, Google has actively built data centers in multiple countries worldwide to support the development of its cloud computing and artificial intelligence businesses. The construction of Google’s data center will bring new employment opportunities and help Vietnam further enhance its digital capabilities, providing a solid foundation for future technological innovation.
