Vietnam Data Center Networking Market Size

Vietnam Data Center Networking Market Analysis

The Vietnam Data Center Networking Market size is estimated at USD 427.36 million in 2024, and is expected to reach USD 594.92 million by 2029, growing at a CAGR of 6.84% during the forecast period (2024-2029).

The increasing demand for cloud computing among SMEs, government regulations for local data security, and growing investment by domestic players are some of the major factors driving the demand for data centers in the country.

• Under Construction IT Load Capacity: The upcoming IT load capacity of the Vietnam data center market is expected to reach 240 MW by 2029.
• Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase to 870K sq. ft by 2029.
• Planned Racks: The country's total number of racks to be installed is expected to reach 43K units by 2029. NCR Ho Chi Minh City is expected to house the maximum number of racks by 2029.
• Planned Submarine Cables: There are close to 20 submarine cable systems connecting Vietnam, and many are under construction. One such submarine cable that is estimated to start service in 2023 is Southeast Asia-Japan Cable 2 (SJC2), which stretches over 10,500 Kilometers with landing points from Quy Nhon, Vietnam.
• An increasing need for data storage has resulted in an upsurge in the number of data centers nationwide. Additionally, energy represents around 40% of the operational costs of a data center; it is also becoming increasingly important for data centers to focus on energy efficiency. To improve energy efficiency as a cost-saving measure, key players focus on developing a green standard for data centers in Vietnam, which results in increasing the demand for Infrastructure management. Hence, such factors are expected to drive market growth during the forecast period.