- A “hyperscale” data centre is planned for Southern Vietnam, according to sources. Additionally, Google is opening an office in Vietnam and plans to focus on AI training and funding.
- Vietnam’s data centre industry lags significantly behind regional rivals, but Google’s mega data centre is expected to inject new energy into the sector.
OUR TAKE
Alphabet is considering a major investment in Vietnam by building a “hyperscale” data centre near Ho Chi Minh City. This would be the first major U.S. tech investment in the country. The move is motivated by Vietnam’s growing digital economy and high demand for cloud services, despite challenges like inconsistent infrastructure and power shortages. If approved, the data centre could be operational by 2027. Google is also supporting Vietnam’s tech sector through scholarships and funding for AI startups.
-Tacy Ding，BTW reporter
What happened
Alphabet (GOOGL.O) is considering building a large data centre in Vietnam, according to a person familiar with the plans. This would mark the first major investment by a U.S. technology company in the Southeast Asian nation.
Google is considering establishing a “hyperscale” data centre near Ho Chi Minh City, Vietnam’s southern economic hub, according to an unnamed source due to the confidential nature of the information.
The investment, the size of which remains unspecified, would provide a significant boost for Vietnam, which has struggled to attract major international capital for data centres due to its inconsistent infrastructure. Large tech companies have traditionally favored other regional countries for their data centre locations.
It is not yet clear how soon Google will make a decision regarding the investment, but the source indicated that internal discussions are ongoing and the data centre could be operational by 2027.
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Why it’s important
Google’s decision is driven by the significant number of domestic and international cloud services clients in Vietnam, as well as the country’s growing digital economy. The source also highlighted that Vietnam is one of the fastest-growing markets for YouTube, Google’s popular online video sharing platform.
Despite increasing demand for digital services from Vietnam’s 100 million residents, foreign investors have largely avoided the country due to occasional power shortages, less appealing investment incentives, and inadequate internet infrastructure, which relies on a few aging subsea cables, according to industry experts.
In Southeast Asia, Singapore, Malaysia, and Thailand are leading the industry and have attracted significantly larger investments from global tech giants.
Google is also offering 40,000 scholarships in Vietnam for basic AI courses and providing $350,000 each to 20 selected AI startups, according to Google Vietnam Managing Director Marc Woo, who shared the news on LinkedIn last month.
The company already has an extensive network of suppliers in Vietnam that assemble its products, including Pixel smartphones.
