Ho Chi Minh City Emerges as a Premier AI Data Center Hub with $4 Billion Investment Pipeline Through 2026

Artificial Intelligence is fundamentally reshaping the data center real estate landscape across Vietnam, with Ho Chi Minh City (HCMC) taking center stage as a primary destination for capital. The city is witnessing a significant surge in hyperscale data center developments and colocation services, a trend fueled by the rapid integration of AI technologies and an escalating appetite for cloud computing. This infrastructure boom highlights Vietnam's growing strategic importance within the regional digital economy, even as the nation works to narrow the capacity gap with market leaders like China.

At the heart of this investment wave is a landmark "AI Factory" project spearheaded by a powerful consortium including G42/Microsoft, FPT Corporation, VinaCapital, and Viet Thai Group. Valued at approximately $2 billion, this massive facility will span 10 hectares within the Tan Phu Trung Industrial Park. The complex is designed to deliver comprehensive AI solutions and cutting-edge cloud infrastructure to both Asian and global markets. To ensure the project's success, the People's Committee of Ho Chi Minh City formed a specialized inter-agency task force in late December 2025 to streamline bureaucratic processes and accelerate construction timelines.

The Tan Phu Trung Industrial Park is also set to host another significant development: a 200 MW complex backed by a $2.0 billion investment from a consortium comprising AIC, KBC, and VietinBank. Simultaneously, Viettel Group initiated the construction of its own high-tech R&D data center in April 2025, which is projected to reach a capacity of 140 MW, with the initial phase slated for completion in early 2026. Furthermore, CMC Technology Group is advancing hyperscale projects in the Saigon Hi-Tech Park (SHTP). Their CMC Hyperscale DC project, which recently received approval, will start with an initial 30 MW capacity and potentially expand to 120 MW, with construction beginning in 2026.

Economic data underscores the scale of these ambitions, with Vietnam's total projected capacity expected to reach approximately 104 MW by 2026. While this represents only about one-tenth of the capacity found in the Chinese market, Vietnam maintains a distinct competitive edge through its cost efficiency. The average construction cost for data centers in Vietnam is roughly $7 per Watt, among the lowest in the Asia-Pacific region. Experts from CBRE Vietnam attribute this growth to accelerated digital transformation, while Trang Le, CEO of JLL Vietnam, highlights the critical role of strategic power planning and the increasing utilization of renewable energy sources in supporting the market.

On the international front, the UAE-based G42 is aggressively seeking a foothold in the Vietnamese market following substantial backing from Microsoft. In response to such global interest, Vietnamese authorities are exploring the implementation of specialized regulatory frameworks, modeled after Singapore’s approach, to better accommodate international business models. These measures are intended to resolve legal discrepancies and ensure seamless integration with global data systems—a prerequisite for major cloud service providers. Through these multi-billion dollar investments and proactive government support, Ho Chi Minh City is rapidly positioning itself as a dominant regional technological powerhouse.