Google, a subsidiary of Alphabet, is reportedly exploring the idea of constructing a large data center in Vietnam, as per an undisclosed source familiar with the project. This potential investment would represent a significant move by a U.S. tech giant into the Southeast Asian nation.
The source revealed that Google is evaluating the feasibility of setting up a “hyperscale” data center near Ho Chi Minh City, the economic center of southern Vietnam. While specifics on costs were not disclosed, it is estimated that a hyperscale data center with a power consumption capacity of 50 megawatts could range between $300 million and $650 million. If the plan moves forward, construction could be finalized by 2027.
The consideration for this investment is reportedly driven by Google’s existing client base in Vietnam for its cloud services and the country’s growing digital economy. Despite Vietnam’s expanding demand for digital services, challenges such as occasional power shortages and an underdeveloped internet infrastructure have deterred foreign investors in the sector.
In contrast, neighboring countries like Singapore and Malaysia have received substantial investments from global tech companies. For instance, Google recently announced a $2 billion investment in Malaysia for its first data center and Google Cloud region in the country.
Vietnam approved reforms in November to allow foreign data center operators to retain full ownership, potentially addressing a regulatory hurdle. However, concerns persist regarding Vietnam’s strict cybersecurity rules and conflicts with foreign tech firms over data localization requests.
Google is also establishing a presence in Vietnam by opening a representative office, recruiting talent, and supporting startup development. While the company declined to comment on specific data center plans, it remains committed to serving its customers in Vietnam and contributing to the country’s digital transformation.
As with any business endeavor, plans may evolve, and the realization of a data center in Vietnam would depend on various factors and decision-making processes.
(Image by Pete Linforth)
**See also: Google partners with Australia to enhance cybersecurity for critical infrastructure**
*Tags: cloud, data center, Google, hyperscalers*
