Google plans data centre expansion in Vietnam

Google is weighing plans to build its first large-scale data centre in Vietnam near Ho Chi Minh City. The project, still under internal discussion, would make Google the first major US tech firm to invest in such infrastructure in the country. A decision has yet to be finalised, but the data centre could be operational by 2027.

Vietnam‘s developing digital economy and the increasing demand for cloud services and YouTube content drive Google’s interest in the region. Despite this, the country has historically struggled to attract large tech investments due to its unreliable power grid, outdated infrastructure, and less favourable regulations. However, recent reforms have opened up opportunities for foreign ownership.

Vietnam lags behind neighbouring Southeast Asian countries like Singapore, Malaysia, and Thailand, which have successfully attracted significant data centre investments. Google’s planned facility would be one of the largest in the industry, potentially consuming as much power as a small city. Estimates suggest such a centre could cost up to $650 million.

As part of its broader growth strategy in Vietnam, Google has already opened a representative office and is hiring staff locally. It also launched initiatives such as offering AI scholarships and supporting startups, reflecting its deepening commitment to the country’s digital transformation.