Vietnam Data Center Storage Market Size & Share Analysis - Growth Trends and Forecast (2026 - 2031)

Vietnam Data Center Storage Market Trends and Insights

Expansion of IT Infrastructure and Broadband

Vietnam’s target of 80% household broadband coverage by 2025 under the National Digital Transformation Program is stimulating demand for edge and core storage systems.^{[1]Ministry of Information & Communications, “Digital Transformation Program 2025,” vietnamnet.vn} Ten additional submarine cables planned by 2030 will lift total capacity to 350 Tbps, generating sustained requirements for high-density edge appliances along landing points. Enterprises such as VTI report 70% cost savings after cloud migration, reinforcing hybrid storage uptake for analytics and backup operations vti. Manufacturing and logistics adopters are installing Industry 4.0 workflows that necessitate low-latency, compute-proximate storage for robotics and real-time quality control. Automotive OEMs and electronics exporters are notable early movers, using rack-scale flash to sustain inline analytics on production floors. This infrastructural momentum anchors long-run growth for the Vietnam data center storage market.

Rising Investments in Hyperscale Data Centers

Viettel’s 140 MW Tan Phu Trung build represents Vietnam’s inaugural 100 MW-plus data center, operating at 10 kW per rack—2.5× the national mean—thereby catalyzing demand for NVMe-accelerated, high-density arrays.^{[2]Anh Minh, “Viettel Starts Vietnam’s First 140 MW Data Center,” vietnamplus.vn} Saigon Asset Management’s USD 1.5 billion, 150 MW SAM DigitalHub signals strong capital appetite for hyperscale footprints. Investors target PUE levels below 1.4 through warm-water and rear-door cooling, creating openings for software-defined storage that optimizes workload placement across distributed nodes. Vendors offering horizontally scalable platforms that minimize rack power draw gain a competitive edge as operators standardize on high-performance compute fabrics to serve regional AI demand.

Government Digital-Transformation and Data-Sovereignty Mandates

Vietnam’s Data Law effective July 2025 institutes a three-tier data-classification regime, compelling “core” and “important” datasets to reside domestically kpmg. The National Data Center launches August 2025 with two mirrored facilities housing around 1,000 racks each, establishing proof-of-concept for resilient sovereign architectures cafebiz. Alibaba’s shift from leasing to building its own site exemplifies how cross-border risk assessments trigger greenfield investment vnexpress. Procurement criteria now prioritize at-rest encryption, geo-fencing and audit logging that map directly to legal mandates, bolstering vendors with compliance-ready firmware and in-country service teams. The regulation accelerates near-term storage hardware refresh cycles across state agencies and regulated industries.

Surge in SME Cloud Adoption Driving NAS

The Ministry of Information and Communications’ SME Digital Transformation scheme subsidizes cloud services from 11 domestic providers, lowering entry costs by 20% and accelerating NAS adoption nhandan. Providers such as VNG Cloud tailor pay-as-you-grow models that angle directly at cost-sensitive SMEs. Growth is clear in e-commerce logistics: Ahamove orchestrates 200,000 daily deliveries on MongoDB Atlas, relying on NAS-backed clusters that flex with transaction peaks mongodb. Government workloads further validate NAS: SaoBacDau’s Red Hat OpenStack-based services deliver elastic object storage to ministries requiring domestic hosting redhat. The trend underpins sustained 6.8% CAGR for NAS within the Vietnam data center storage market.

High Upfront Capex for Tier III/IV Facilities

Tier III certification demands dual-path power, cooling and storage redundancy. Delta Electronics’ EPC contract in Hoa Lac illustrates capital intensity, with developers absorbing long ROI timelines delta. Domestic firms such as CMC Telecom must match global benchmarks to win multinational clients after becoming Vietnam’s first Level 4 Information Security-accredited site cmc. Financing constraints push operators toward vendor-financed, modular blocks and hyper-converged appliances that compress initial outlays. While the restraint suppresses greenfield pace, it stimulates demand for pre-integrated solutions that reduce on-site engineering effort.

Shortage of Skilled Storage Engineers

Vietnam counts roughly 6,000 hardware specialists against a projected need of 20,000 within five years.^{[3]Channel News Asia, “Vietnam Faces Tech Talent Crunch,” channelnewsasia.com} Public programs such as Ho Chi Minh City’s USD 5 million initiative to train 40,000 microchip engineers by 2030 aim to narrow the gap vietnamnet. Meanwhile, vendors embed automation into management stacks, lowering skill thresholds required for day-to-day operations. Hyper-converged platforms and AI-driven telemetry become vital differentiators for operators facing recruitment bottlenecks in the Vietnam data center storage industry.

*Our forecasts treat driver/restraint impacts as directional, not additive. The impact forecasts reflect baseline growth, mix effects, and variable interactions.

Segment Analysis

By Storage Technology: SAN Dominance Amid NAS Acceleration

SAN solutions delivered 33.92% of 2025 revenues, reflecting enterprise demand for low-latency, block-level services in mission-critical cores. This share positions SAN as the performance backbone of the Vietnam data center storage market. NAS, climbing at 6.58% CAGR, benefits from SME cloud programs that reward cost-effective, Ethernet-based deployments. The Vietnam data center storage market size for NAS is projected to cross USD 0.1 billion by 2031, aided by government incentives. Direct-attached and object systems supplement specialized edge and archival workloads governed by emerging data-retention rules.

Hybrid adoption patterns intensify as Viettel IDC integrates Cloudian HyperStore to offer object and file services on a unified appliance, combining SAN-grade throughput for transactional workloads with NAS scalability for analytics datacenternews. Software-defined overlays blur protocol boundaries, enabling dynamic selection between block, file and object APIs. Enterprises thus future-proof investments while optimizing TCO, sustaining robust demand across all technology categories.

By Storage Type: HDD Arrays Lead Despite Flash Momentum

HDD arrays accounted for 42.55% of spending in 2025 due to favorable USD per-GB economics. All-flash, the fastest-growing at 9.12% CAGR, captures AI inference, real-time analytics and digital banking peaks. Vietnam data center storage market share for all-flash arrays is slated to climb beyond 31.2% by 2031. Hybrid tiers persist for mid-range workloads that fluctuate between capacity and performance needs.

Flash traction is underscored by Techcombank’s migration to IBM DS8886, quadrupling peak transaction throughput while shrinking rack footprint ibm. Kingston’s DC600M SSD line addresses mixed-use traffic and power efficiency, echoing policy emphasis on sustainable IT kingston. Energy incentives further tilt TCO calculus in favor of flash for operators seeking carbon neutrality certifications.

By Data Center Type: Colocation Leadership with Hyperscaler Growth

Colocation sites held 49.05% of 2025 revenues as enterprises opt for shared infrastructures that offload capital and operational complexity. The Vietnam data center storage market continues to rely on colo for interconnection access and quick deployment. Hyperscalers, bolstered by 8.16% CAGR, drive bulk capacity orders for high-density racks and petascale storage pools. The Vietnam data center storage market size for hyperscalers is estimated to climb from USD 0.07 billion in 2026 to more than USD 0.12 billion by 2031.

Viettel’s 10,000-rack flagship sets a reference design for AI and 5G workloads requiring enhanced power and cooling envelopes genk. Colocation incumbents counter with on-ramp services to AWS, Google Cloud and Azure, adding value-added storage tiers optimized for hybrid migrations. Enterprise and edge micro-data centers remain vital for latency-sensitive manufacturing and public-sector use cases under strict data-localization rules.

By End User: Telecommunications Strength with BFSI Acceleration

IT and telecom captured 29.10% of 2025 revenue, leveraging backbone networks and national backhaul to deliver ISP, CDN and 5G services. BFSI, expanding at 7.21% CAGR, demonstrates outsized appetite for encrypted, low-latency storage to support digital banking, e-payment platforms and regulatory audits. Vietnam data center storage market size for BFSI is forecast to nearly double by 2030.

VPBank’s OpenAPI platform processes 100 million monthly transactions on MongoDB clusters, highlighting new-age workloads that tax storage IO more than capacity mongodb. Government digital offices shift citizen services onto sovereign clouds, prompting expansions in archival and compliance repositories. Healthcare early adopters like Ho Chi Minh City’s eClinica leverage structured storage to consolidate 80,000 electronic patient records, spotlighting sectoral diversification 

By Form Factor: Rack-Mounted Dominance with Composable Innovation

Rack-mounted chassis delivered 62.70% of revenue in 2025 thanks to broad ecosystem support and straightforward integration. Composable designs, rising at 9.28% CAGR, disaggregate compute, storage and network to enable dynamic pooling. Vietnam data center storage market size for composable solutions is projected to exceed USD 0.06 billion by 2031.

Dell’s Integrated Rack 7000 bundles liquid cooling and GPU-dense sleds for AI, demonstrating how form-factor innovation keeps pace with power and performance escalation dell. Blade and modular formats serve branch and disaster-recovery nodes, particularly in edge telco shelters requiring compact footprints. Software orchestration engines assign storage volumes on-demand, maximizing utilization and aligning with the skills shortage imperative.

By Interface: SAS/SATA Prevalence with NVMe Emergence

SAS/SATA maintained 53.85% share in 2025 due to mature toolchains and broad application compatibility. NVMe, advancing at 8.01% CAGR, underpins AI training sets and latency-sensitive fintech workloads. Vietnam data center storage market size for NVMe devices is projected to triple between 2025 and 2030.

Kingston’s FURY Renegade G5 PCIe 5.0 SSD posts up to 14,800 MB/s reads, delineating next-gen throughput curves for AI inference. TMBThanachart Bank’s deployment of Huawei end-to-end NVMe cut latency 60% and boosted compute 25%, validating interface migration economics. Fibre Channel persists for mission-critical SAN fabrics, whereas iSCSI and RoCE overlays enable cost-effective Ethernet convergence strategies.

Geography Analysis

Ho Chi Minh City and Hanoi anchor more than two-thirds of storage deployments, reflecting economic clout, fiber density and proximity to submarine cable landings. Viettel’s Tan Phu Trung complex and CMC’s Tan Thuan site position the southern cluster as the primary hyperscale corridor while feeding spillover demand for edge nodes in neighboring provinces soha. In the north, VNPT’s 23,000 sqm Hoa Lac campus with 2,000 racks supports government ministries and state banks, creating a gravitational pull for equipment vendors.

Central provinces increasingly court operators through renewable-power availability. Ninh Thuan hosts 1,500 MW solar and 1,442 MW wind capacity, offering green energy hooks for ESG-driven investors looking to cut Scope 2 emissions energysystemsresearch. Government strategy to designate regional digital hubs by 2050 accelerates fiber rollout and special-economic-zone tax relief, encouraging distributed storage topologies. Coastal locations gain thermodynamic efficiency for free-air and seawater cooling solutions; inland industrial parks offer affordable land to build multi-hectare campuses.

Connectivity remains the decisive factor for site selection across the Vietnam data center storage market. The upcoming submarine cable lines and continued investment in national backbones allow operators to place capacity closer to renewable sources without sacrificing latency to urban demand centers. As metro dark-fiber rates drop, tier-2 cities such as Thai Nguyen emerge as attractive cluster sites, supported by workforce development schemes for semiconductor and AI specializations.

Regulatory Landscape

Vietnam has moved to a clearer operating regime for data centers under the Telecommunications Law 2023 (effective July 2024), which defines data center services and sets operator obligations around registration and compliance rather than telecom-style licensing. In parallel, Decree No. 163/2024/ND-CP (effective December 2024) allows 100% foreign ownership of data centers, which supports international participation in local facilities that then feed enterprise and cloud storage procurement.

On technical compliance, Circular No. 42/2025/TT-BKHCN (effective February 1, 2026) updates construction and operation requirements and references national technical standards such as QCVN 32:2020/BTTTT and QCVN 06:2021/BXD. Operators register and report certain infrastructure changes to the Ministry of Information and Communications (MIC) and its Telecommunications Department, while storage buyers for regulated and public-sector workloads align procurement with domestic hosting and security controls shaped by Vietnam's data-sovereignty direction (including the Data Law effective July 2025).

Value Chain Analysis

Vietnam's data center storage value chain starts with international storage OEMs and component suppliers (HDD and SSD media, controllers, NICs/HBAs, and NVMe fabrics) selling through local distributors, system integrators, and telecom-led data center operators. Global vendors such as Dell Technologies, NetApp, Oracle, Kingston Technology, Huawei, Seagate, and Western Digital typically land platforms via channel partners for enterprise and colocation deployments, while hyperscale and AI projects also pull direct engagement for reference architectures and high-density design.

Midstream, local facility operators (including Viettel IDC, VNPT VinaData, CMC Telecom, and FPT Telecom) translate capacity builds into bulk storage orders, integration services, and managed offerings across block, file, and object storage. Downstream activities include deployment, migration, and ongoing operations (monitoring, backup, DR, and compliance), supported by specialist data center design and construction contractors such as Delta Group, Aurecon, Apave, and GreenViet. MIC registration and technical standards requirements also reinforce demand for in-country maintenance, spares, and compliance-ready firmware and security services, which affects vendor selection and lifecycle support models.

Market Opportunities and Future Outlook

Execution of data-sovereignty requirements is creating whitespace for compliance-aligned storage stacks inside domestic facilities, especially for government and regulated industries where encryption, auditing, and resilient architectures are procurement criteria. Vietnam's Data Law effective July 2025 and the August 2025 launch of the National Data Center (two mirrored sites with around 1,000 racks each) offer clear demand signals for sovereign hosting, backup, and archival tiers that remain within Vietnam, favoring vendors and operators with local service coverage and validated security configurations.

AI-ready infrastructure is also shifting storage requirements toward higher-throughput flash and NVMe, and this shows up in recent build-outs and partnerships. Viettel's Hoa Lac 2 AI Data Center integrating NVIDIA H200 systems with Uptime Tier III certification, along with the 140 MW Tan Phu Trung hyperscale campus, raises the baseline for rack density and performance per workload. This is expanding opportunities for all-flash arrays, NVMe-oF capable designs, and software-defined storage that optimizes power and footprint. On the investment side, the framework between FPT, Viet Thai Group, and G42, with commitments up to USD 1 billion for AI and cloud infrastructure, supports a pipeline of hyperscale-class facilities where storage vendors can attach through reference designs, managed services, and lifecycle supply programs tuned to local compliance and grid-constrained efficiency needs.