The Development Trends of the Data Center Market in Vietnam
Data centers are the backbone of IT infrastructure, providing critical services to support and maintain the operations of organizations and businesses in today’s digital environment. The future demand for data centers in Vietnam is significant, while the Vietnamese market accounts for less than 1% of the total number of data centers worldwide. Lastly, we’ll look at information about the data center in the Ho Chi Minh City High-Tech Park, 1Hub Saigon – a data center set to become operational in the future in Thu Duc City.
What is a data center?
A data center is a facility that houses and manages equipment and systems related to processing, storing, networking, and other services of an organization or business. Data centers are part of IT infrastructure, where all IT equipment and systems are centralized to support the operations of an organization.
Data centers are the backbone of today’s digital activities
The first function of data centers is to process various types of data such as numerical computations and other data-related tasks. The second function of data centers is to support data storage from various sources using storage media such as hard drives, network storage systems, and cloud computing storage solutions. Lastly, data centers provide network infrastructure to connect devices and systems within the data center and to connect to external networks.
Data centers typically have server rooms containing servers placed in racks or cabinets, where we often see rows of servers stacked on top of each other. To ensure servers do not overheat, data centers have sophisticated cooling systems to maintain stable temperatures. Management and monitoring teams oversee data centers 24/7 to ensure continuous and efficient server operation. Data centers are also heavily secured because data itself is a type of business asset; therefore, a top priority for data centers is careful security measures to prevent incidents related to data theft or loss.
Data centers have tightly secured protection systems both physically and in cyberspace
Data centers can range in size from small to large, depending on the needs of the organization using them. Currently, according to common evaluation systems, data centers are divided into four levels based on their performance, measured by factors such as uptime, cooling capability, backup power, etc. Currently, in Vietnam, there are only Tier 3 data centers.
See more: The Data Center Market – A Sweet Slice for Technology Businesses
Market scale of data centers in Vietnam
Currently, Vietnam has nearly 40 operational data centers. Since 2010, the electricity consumption of data centers in Vietnam has tripled. Data centers are essential infrastructure foundations in the country’s digital transformation. Vietnam is transitioning into the digital age, and increasing both the quantity and quality of data centers in Vietnam is necessary. Currently, Vietnam accounts for less than 1% of the total number of data centers worldwide, leaving significant room for development in this field. Globally, there are over 8000 data centers, with more than 30% located in the United States.
Locations and Cities with High Concentrations of Data Centers Worldwide
Minister of Information and Communications Nguyen Manh Hung stated that the amount of data in the world doubles every year, with Vietnam even faster. Therefore, Vietnam needs about 5 Tier data centers or higher to be put into operation each year to meet the increasing demand. Data is a crucial resource for the digital economy, and data processing and big data industries will be key industries in the future.
It is estimated that by 2026, the data center market in Vietnam could reach over $1.5 billion. According to the Government and the Ministry of Information and Communications, by 2025, 100% of government agencies and 70% of businesses nationwide will use domestic cloud computing services. It can be seen that Vietnam is very serious about digitizing its national data system to adapt to the current digital economy.
At this time, it brings both opportunities and challenges for the data center market in Vietnam. This is an opportunity for many investors to start building large-scale, high-quality data centers with support from government policies. New projects also face many challenges when entering Vietnam’s data center market. Issues such as land funds in economic-industrial centers like Ho Chi Minh City are narrowing, which are often places with good positions and stable energy supply for data centers.
In addition, new standards for green data centers will also be a concern for investors, as Vietnam, like the rest of the world, is moving towards developing sustainable data centers that consume fewer resources and emit less greenhouse gasses. It should be noted that while there are only over 8000 data centers worldwide, they are consuming about 2-3% of the total energy and emitting an estimated 5% of the total global greenhouse gas emissions.
Sustainable development is a global trend, and data centers will also follow this trend
It can be seen that with the government’s orientation and the limited number of data centers in Vietnam compared to the country’s development needs, it is a reasonable decision for both domestic and foreign investors to step into this field in Vietnam. Currently, there are many high-quality data center projects initiated by investors and corporations, both domestic and foreign, being built in critical technical industrial locations such as industrial parks, economic zones, and special economic zones. One of the prominent projects, attracting much attention, is the 1Hub Data Center project located in the High-Tech Park of Ho Chi Minh City.
Learn more: Challenges in Building Green-Certified Data Centers
Exploring the 1Hub Data Center in Saigon High-Tech Park
1Hub Data Center is a data center project located in Saigon High-Tech Park, with large scale and high standards, expected to be among the top-quality data centers in Vietnam when operational, estimated to be in 2025. With an investment of up to $70 million, the project building will have a height of 55 meters and a total floor area of 18,000 square meters.
The Ho Chi Minh City High-Tech Park 1Hub Data Center has a total investment budget of up to $70 million USD
The 1Hub Data Center will offer various services such as server rental, rack rental, data center space rental, as well as data center management. This is one of the few data center projects that meet the standards of Tier 3 data centers, the highest level in Vietnam currently.
According to the Uptime Tier standard – the most widely used data center evaluation standard globally – a Tier 3 data center will have an annual uptime of up to 99.82%, downtime of less than 1.6 hours, and can maintain operations for at least 72 hours in the event of sudden power loss. Compared to other tiers, downtime would be less than 22.7 hours per year with no backup power source during power outages. It can be seen that in a world where the majority of information, activities, and transactions can be stored and processed as computer data, the stability and security of high-tier data centers are crucial. The 1Hub Data Center in Saigon Hi-Tech Park is one of the few data centers capable of operating 24/7 on a large scale in Vietnam today.
The Ho Chi Minh City High-Tech Park 1Hub Saigon data center offers a wide range of services for businesses and organizations in need of data center facilities
Despite not yet being operational, the 1Hub Data Center project has received interest from many customers who are looking to collaborate and use its services in the long term. With its high-quality, modern data center services and convenient location, 1Hub Data Center is becoming a shining spot in the data center market in the East Saigon area.
Xem thêm: Why Choose to Rent an Office at OneHub Saigon?
Conclusion
Data centers are a crucial foundation in the current digital transformation in Vietnam. The data center market in Vietnam still has a lot of room for growth, with increasing demand for data center usage in Vietnam and globally. The 1Hub Data Center, with its substantial investment, large scale, and Tier 3 standards, will be a highlight in Vietnam’s data center market in the near future.
