Vietnam Data Center Server - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2019 - 2030

The Vietnam data center server market reached a value of USD 388.8 million in the previous year, and it is further projected to register a CAGR of 8.6% during the forecast period. The increasing demand for cloud computing among small and medium-sized enterprises (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.

Vietnam Data Center Server Market Trends

IT & Telecommunication Segment To Hold A Major Share In The Market

• Following the global trend of cloud technology, the interest of Vietnamese companies and their demand for cloud services is also increasing. Service provider opportunities in IT services include IT technical training and IT consulting, management, software/enterprise applications (ERP and CRM systems, financial and accounting software), data centers and data storage, and web services.
• In 2022, the launch of the 5G network and Viettel revolutionized the digital market of the country. MIC has been assigned primary responsibility for accelerating the development of the digital economy, as reported by OpenGov Asia. The Ministry is tasked with directing and assisting other ministries, agencies, and local governments in implementing the strategy. Such developments are expected to increase the adoption of data storage solutions and positively impact the market.
• The telecom segment also witnessed significant growth of 5.48% during the study period. Many telecom operators aim to increase their offerings and expand their presence nationwide amid the growing internet users and economy. For instance, Viettel IDC plans to invest in 4G and 5G infrastructure and fiber optic connectivity for every household by 2025.
• In 2022, the launch of the 5G network and Viettel revolutionized the digital market of the country. Vietnam has plans to increase its share of the digital economy's gross domestic product (GDP) to 20% by 2025. Vietnam enjoys 99.8% 4G coverage nationwide, with three major carriers, Viettel, VNPT, and MobiFone, successfully piloting 5G technology in 16 cities and provinces. Such developments are expected to increase the adoption of data storage solutions and positively impact the market.

Blade Servers To Grow At A Faster Pace In The Coming Years

• Blade servers are designed to save space in data centers. Multiple blade servers can be housed in a single chassis, reducing the physical footprint required for your servers.
• Blade server chassis are typically designed with efficient cooling mechanisms, which can help maintain a consistent temperature in the data center and reduce cooling costs.
• Blade servers often come with integrated management tools that allow for centralized control and monitoring of all servers within the chassis.
• The growing adoption of technologies such as cloud computing, artificial intelligence (AI), IT services, Internet penetration, and social media users by businesses are propelling the use of servers in data centers.
• Blade servers are generally designed with energy efficiency in mind, helping to reduce power consumption and operational costs.

Vietnam Data Center Server Industry Overview

The Vietnam data center server market is relatively low in terms of competition and has some players in the market, such as Dell Inc., Cisco Systems Inc., Kingston Technology Company Inc., Inspur Group., Fujitsu Limited. These major players focus on expanding their customer base in the country. These companies leverage strategic collaborative initiatives to increase their market share and profitability.

In May 2023, Cisco introduced UCS X servers that cut data center energy use in half. The combination of the Cisco Intersight infrastructure management platform and Unified Computing System (UCS) X-Series servers reduces data center energy consumption by up to 52% at a 4:1 server consolidation rate.

In March 2022, Inspur Information, a world-leading IT infrastructure solutions provider, and JD Cloud, a digital and intelligent solutions provider, announced they have jointly launched the liquid-cooled rack server ORS3000S at the 2022 Inspur Partner Forum (IPF22).

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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