$2 Billion Hyperscale Data Centre Proposed for Ho Chi Minh City
Ho Chi Minh City's People’s Committee has received a proposal for a $2 billion hyperscale data centre focused on AI development and data services. The project is backed by a consortium including G42 Technology (major shareholders feature the UAE's sovereign wealth fund and Microsoft), FPT Corporation, VinaCapital, and Viet Thai Investment Group.
A Strategic Investment for AI and Cloud Infrastructure
The data centre aims to deliver comprehensive AI solutions and advanced cloud infrastructure for users across Asia and globally. The proposal highlights potential socioeconomic benefits such as significant GDP growth, increased foreign investment, thousands of high-quality jobs, and the development of local IT talent.
Regulatory Hurdles and Legal Challenges
Despite the promising outlook, investors face challenges due to discrepancies between Vietnam's legal framework and international standards, especially around data regulations. Restrictions on global data systems and Vietnam's current data monitoring policies could limit the centre’s growth and deter international clients. This situation might drive investments towards countries with more favourable regulations.
To address these issues, the city has requested the Prime Minister consider special mechanisms for projects with international business models, similar to policies in Singapore. Vietnam is recognized as one of the top 10 emerging markets in Asia-Pacific for data centre investment.
Policy Proposals to Support the Project
Ho Chi Minh City has proposed prioritizing cloud infrastructure over on-premises systems to enhance security and comply with national standards. The People’s Committee also suggested a dedicated working session involving the Prime Minister and investors to discuss challenges and policy recommendations that could remove barriers for this project.
About G42 Technology and Local Market Context
Founded in 2018 in Abu Dhabi, G42 has grown into a global leader in AI solutions, infrastructure, and cloud computing, operating 24 data centres with a total capacity of 204MW. The company plans to expand to 500MW across six countries by 2029. In Vietnam, G42 intends to implement AI initiatives including a “Cloud Dividend” model focused on regional revenue growth, job creation, public service improvement, and quality of life enhancements.
According to Cushman & Wakefield Vietnam, Vietnam targets over 92MW of data centre capacity with an estimated investment of $640 million over the next five to seven years. Interest from major players like Huawei Cloud, Alibaba, NTT, and others demonstrates Vietnam’s growing appeal. Competitive construction costs, strategic location, and a focus on renewable energy contribute to this trend.
Real Estate Market Insights
Industrial land rents in southern Vietnam averaged $177 per sq.m per lease term in Q1, while northern Vietnam saw $132 per sq.m. These figures represent annual growth of 3-5%, indicating a stable and competitive industrial real estate market. Continued improvements in digital infrastructure, power stability, and supportive policies will be crucial to sustaining this momentum.
- Project Investment: Approximately $2 billion
- Key Investors: G42 Technology, FPT Corporation, VinaCapital, Viet Thai Investment Group
- Focus: AI development, cloud services, hyperscale data centre infrastructure
- Challenges: Legal and regulatory discrepancies affecting data handling
- Market Potential: Vietnam among Asia-Pacific’s top emerging markets for data centres
For professionals in real estate and construction, this development signals strong demand for infrastructure supporting high-tech facilities. Understanding regulatory trends and market dynamics will be essential for capitalizing on emerging opportunities in Vietnam's data centre sector.
To learn more about AI and cloud infrastructure trends impacting real estate and technology sectors, visit Complete AI Training.
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