The Challenges in Building “Green” Data Center
Currently, specialized technology and Internet spaces have transformed every aspect of life, generating an incessant flow of data and placing pressure on data center infrastructure, storage facilities, and connectivity. The data center located in the Saigon High-Tech Park is one of the few large-scale data centers compliant with green standards. However, the data center market in Vietnam remains relatively subdued compared to other countries in the region.
The era of the Internet of Everything and the digital market is creating enormous pressure on data center infrastructure
In the current context, with the explosion of data and the Internet of Things (IoT), an increasing amount of data is being generated. To illustrate this vast amount of data, Mr. Hoang Van Ngoc, CEO of Viettel IDC, provides examples of the colossal data generated by a billion people worldwide in a single minute. Specifically, he mentions that globally, terabytes of data (1 terabyte = 1000 Gigabytes) can be created every minute. Therefore, with approximately half a million minutes in a year, it results in billions of terabytes of data.
This immense amount of data is connected and shared through millions of searches on platforms like Google, and millions of interactive images on platforms such as TikTok, Instagram, etc. It is predicted that by 2025, in developed countries, there will be a data interaction every 18 seconds. It is evident that the colossal data generated every minute creates significant pressure on storage and connectivity infrastructure, especially in a market where data centers are still limited, such as Vietnam.”
The huge amount of data generated from the internet will put pressure on Vietnam’s data storage and connection infrastructure if the construction of new data centers is not quickly promoted
Information from the “Data Center & Cloud Infrastructure Summit 2023” conference has revealed a noteworthy fact that the data center market in Vietnam, compared to the population and businesses, as well as in comparison to countries in the region and even globally, is at a very modest level. Currently, Vietnam has fewer than 30 commercial data centers, and their electricity consumption accounts for only 0.2% of the total electricity consumption, while other countries typically consume around 2-3% for data centers, and Singapore even reaches 7%.
Vietnam holds a unique position with the 13th largest population globally, and the potential for business as well as the demand for digital transformation and the use of digital data are increasing. However, the data center infrastructure still cannot fully meet the market’s needs and potential. In the case of Vietnam, decentralized data centers within organizations and businesses are a characteristic of the market.
Currently, Vietnam has very few large data centers due to various reasons such as limited land resources and few investors in this field. In Ho Chi Minh City, the data center projects in the Saigon Hi-Tech Park can be considered the largest in Vietnam, although the number of data centers in the Saigon Hi-Tech Park is still relatively limited compared to the rapid development of technology and the current demand for data centers.
Vietnamese businesses are gradually recognizing the modern data center model. When data is stored centrally in professional data centers, risks related to information security, operations, and technology updates are reduced. Renting data centers from professional providers brings significant benefits, with a skilled and knowledgeable technology team, and regularly updated systems, especially in security and data protection.
Many businesses are in need of data center services
While decentralized data storage in businesses requires them to manage knowledge about data centers, and resources, and even cope with security threats, Vietnam is also among the countries most vulnerable to attacks and data risks.
Green data center pressure
Along with this massive amount of data, data centers are facing pressure to reduce carbon emissions and ensure green standards. Businesses are demanding energy efficiency and carbon emission reduction when renting data centers. Green data centers apply advanced technologies and strategies to reduce environmental impact. They are designed to consume less electricity, save energy, and limit harmful effects on the environment. One notable green data center project is the 1Hub Data Center, with an investment of over 70 million USD and an estimated Tier III scale (the highest tier in Vietnam currently). It is located in the Saigon Hi-Tech Park, providing data solutions for the business community within and beyond this high-tech zone.
The trend of building according to the green data center model is strongly supported worldwide
Pressure from environmental and social advocates is driving businesses and organizations to focus on green data centers. Energy consumption is considered one of the significant costs of data centers, ranking among the top 10 concerns for data center operators. While building green data centers may require substantial initial investment, they subsequently help save operating and maintenance costs in the long term. Additionally, they create a conducive working environment for employees and enhance relationships with the local community.
See more: Why should you choose an office for rent in the Saigon High-Tech Park?
Upgrade or build a new green data center?
A challenging decision for many businesses
Green data centers offer a range of advantages for businesses. Firstly, they help minimize space requirements, reduce carbon emissions, and cut long-term operating costs. Moreover, they decrease water consumption and emissions while laying the foundation for interaction with renewable energy providers.
Although constructing and implementing green data centers may involve significant upfront capital expenditure (CAPEX), it brings long-term benefits. This leads to a trade-off: an increase in CAPEX, but a decrease in operating costs (OPEX). With green data centers, businesses can save energy, consume less electricity, and automate monitoring operations, leading to reduced labor costs.
Furthermore, a challenge arises in upgrading and retrofitting existing data centers to transform them into green data centers. This process may require significant costs and time, and it might be challenging to meet green standards. Not all data center projects match the scale and green standards achieved by high-tech zone data centers in Ho Chi Minh City. Planning and building based on outdated technology could be a barrier to meeting current green standards. This raises an important question about whether to improve existing data centers or construct a new data center with a green design from the outset.
Upgrade or build a new database?
However, the reality is that abandoning old data centers is not always easy. Businesses must consider various factors such as existing infrastructure, connectivity, and customer data before making a final decision. This requires financial discipline and careful consideration to ensure the right decision for the future of the business.
Learn more: Office for rent in Thu Duc area
Renting a data center in the Saigon High-Tech Park, why not?
For businesses that do not have the conditions to build their own data center, renting services from a third party, such as the data center in the Saigon High-Tech Park – 1Hub Data Center, would be a more optimal choice. It saves costs while allowing professional storage and management of data. The 1Hub Data Center is expected to cover an area of 18,000m2, with an estimated height of 55 meters, and is scheduled to become operational in 2025, serving as a bright spot among data centers located in the Saigon High-Tech Park.
These third-party data centers are likely to experience strong growth in the coming years because Vietnam still has room and potential to build new data centers to participate in the ongoing global technology race. However, with a limited number of high-quality data centers like 1 Hub Data Center, the existing data centers in the Saigon High-Tech Park may struggle to meet the long-term needs of many businesses.
Renting a data center in Saigon Hi-Tech Park’s 1Hub Data Center is a suitable solution for most businesses in Vietnam today
Conclusion
The era of the Internet of Things is exerting immense pressure on data infrastructure. Vietnam has yet to fully seize the opportunity to develop a data center model despite having ample space and potential. Alongside the pressure on existing data center systems due to the surge in data, new data centers face their own challenge, which is the standard for green data centers.
Although green data centers, in general, offer long-term benefits for businesses and the environment, upgrading or building new green data centers remains a challenging task for many enterprises. Renting professional data centers externally, such as 1Hub Data Center – a data center in the Ho Chi Minh City High-Tech Park, could be a reasonable solution for many businesses.
See more: The trend of moving offices out of the central area (Decentralization)
