Google is contemplating the construction of a substantial data center in Vietnam, potentially marking the first major investment by a prominent U.S. tech firm in the Southeast Asian country. The proposed “hyperscale” data center would be located near Ho Chi Minh City.
Although the exact size of the investment has not been disclosed, this move could significantly boost Vietnam’s appeal for foreign capital in the data center sector. The timeline for Google’s decision remains unclear, but internal discussions are ongoing, and the data center might be operational by 2027.
Hyperscale data centers are among the largest in the industry, with power usage comparable to that of a large city. A center with a power capacity of 50 megawatts (MW) could cost between USD 300 million and USD 650 million.
Google’s interest is driven by the growing number of its cloud services clients in Vietnam and the country’s rapidly expanding digital economy, which includes a strong market for YouTube. Currently, major data center operators in Vietnam include several state-owned enterprises, such as IDC Becamex and VNPT.
Despite Vietnam’s stringent cybersecurity regulations and past disputes with foreign tech companies over data storage, Google remains committed to expanding its presence in the country.
The company is also setting up a representative office in Vietnam and recruiting engineers, marketing professionals, and other staff. Additionally, Google is providing 40,000 scholarships for basic AI courses and USD 350,000 grants to 20 selected AI start-ups. The company already relies on a network of suppliers in Vietnam for assembling its products, including Pixel smartphones.
(Source: Reuters)
