Vietnam-based technology firm CMC Corp. has received approval from authorities in Ho Chi Minh City to build a hyperscale data center.

The project will require an investment of US$250 million.

It will initially have a capacity of 30 megawatts, with the possibility of expanding to 120 megawatts, according to CMC Corp.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Vietnam accelerating within Southeast Asia’s data center boom

CMC Corp’s $250 million facility represents more than just a single company’s growth. It is part of Vietnam’s strategic positioning within Southeast Asia’s rapidly expanding data center market.

Vietnam currently has approximately 33 data centers, primarily concentrated in Hanoi and Ho Chi Minh City, and is working to establish itself as a key regional hub 12.

The Vietnamese data center market, valued at $1.57 billion in 2024, is projected to grow at 14.2% annually to reach $3.53 billion by 2030, reflecting the country’s digital economy expansion 3.

This growth occurs within a broader regional context where Southeast Asia’s data center market remains significantly underpenetrated (55-70% below developed regions) and is expected to nearly triple in size by 2027 42.

Ho Chi Minh City’s selection for CMC’s hyperscale facility aligns with a trend across Southeast Asia, where economic centers are becoming focal points for data infrastructure as companies compete for position in emerging digital economies.

2️⃣ Regulatory reforms catalyzing Vietnam’s data infrastructure development

The approval of CMC’s hyperscale data center comes amid significant regulatory changes designed to accelerate Vietnam’s digital infrastructure growth.

A new decree effective July 2025 is simplifying regulatory processes for telecom and data center operations, allowing local governments like Ho Chi Minh City to directly grant licenses for data centers and cloud services 5.

The Vietnamese government has strategically relaxed foreign ownership restrictions specifically for data centers to stimulate investment in this critical infrastructure 5.

These policy shifts are part of a deliberate government strategy to support digital transformation and create a more favorable environment for both domestic players like CMC and international investors 6.