Watch Out for Exclusive Data Center Reports on Vietnam & Philippines – More than $1 Billion Investment Opportunities in the Next 6 Years
CHICAGO, Feb. 27, 2024 /PRNewswire/ — Arizton publishes the latest research report on the Vietnam data center market and the Philippines data center market.
Rising Demand for Wholesale Colocation Services Drives Vietnam’s Data Center Investments
The Vietnam data center market size will witness investments of USD 1.43 billion by 2029, growing at a CAGR of 13.12% during the forecast period. Get Insights on 26 Existing Data Centers and 06 Upcoming Facilities across the Vietnam
Vietnam hosts various free trade zones, including the Quang Trung Software Park, Da Nang IT Park, Hao Lac Hi-Tech Park, Cau Giay Hanoi Software Technology Park, Saigon Hi-Tech Park, and Hanoi Software Technology Park. In July 2023, Joton Group announced plans to develop a free trade zone in the northern port city of Haiphong. Vietnam’s colocation market is growing steadily, following the other major markets in Southeast Asia. The increasing transition of workloads from on-premises to cloud platforms is driving the country’s demand for wholesale colocation services.
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Data center operators in Vietnam build reliable, efficient, and flexible facilities. Telecom operators lead data center investments. The data these operators store is crucial as it includes customers’ personal information. The standards given by the organization to a specific data center can attract customers. Archetype Group was involved in the architectural and engineering designing of FPT Telecom’s data centers in Ho Chi Minh City, Vietnam. Designing a data center costs up to 5% of the total investments made in the facility.
In the initial phase of 5G development, Vietnam plans to roll out 5G services in industrial parks, schools, research institutes, and government agencies. The government’s ambitious goal is to ensure that 100% of the population has their devices connected to the 5G network by 2030. With 50 million internet users, Vietnam ranks among the top 20 countries globally. While mobile connectivity has been instrumental in the country’s progress, the advent of 5G is anticipated to lay the crucial groundwork for the next stage of digital transformation in Vietnam.
In the ASEAN region, Vietnam is quickly growing as a market for cloud computing and data center services. There are over 10 providers, including local and international companies. Areas like Binh Duong Province and Da Nang are seeing big investments in data centers. In Ho Chi Minh City, upcoming investments will cover more than 75% of the area in the near future.
Investment Opportunities
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Vietnam is also witnessing growing cloud services adoption from business organizations and government institutions. For instance, Telecom Vietnam, a provider of connectivity services, entertainment, and technology solutions, has integrated Google Cloud into its hybrid multi-cloud strategy as part of its overarching cloud-first strategy.
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In June 2022, Amazon Web Services (AWS) announced plans to increase its presence in Vietnam by urging clients to utilize its offshore cloud services. Meanwhile, the Vietnamese government is concurrently urging local companies to store their data within the country for security concerns.
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The increasing adoption of cloud-based services will help grow retail and wholesale colocation services. The market is witnessing increased demand for colocation spaces across existing and upcoming data centers.
Vendors in the Vietnam data center market
IT Infrastructure Providers: Cisco Systems, Dell Technologies, Fujitsu, Hewlett Packard Enterprise, Huawei Technologies, Hitachi Vantara, IBM, Internet Initiative Japan (IIJ), Juniper Networks, Lenovo, NetApp, NEC, and Oracle
Data Center Construction Contractors & Sub-Contractors: Aurecon, Archetype Group, AWP Architects, Apave, Delta Group, GreenViet, Sato Kogyo and Universal Smart Data Center Technology (USDC Technology)
Support Infrastructure Providers: ABB, Caterpillar, Cummins, Cyber Power Systems, Delta Electronics, Eaton, Johnson Controls, Fuji Electric, HITEC Power Protection, KOHLER-SDMO, Legrand, Mitsubishi Electric, Piller Power Systems, Narada, Rittal, Schneider Electric, STULZ, Siemens, TECO Electric & Machinery, Trane, and Vertiv
Data Center Investors: CMC Telecommunication Infrastructure Corporation (CMC Telecom), FPT Telecom, HTC Telecom International, NTT Global Data Centers, VNTT, Telehouse, Viettel IDC, VNPT, and VNG Cloud
New Entrants: Gaw Capital, Edge Centres, Infracrowd Capital, and Worldwide DC Solutions
Philippines Data Center Market Poised for Explosive Growth, Get Insights on 22 Existing Data Centers and 15 Upcoming Facilities across the Philippines
The Philippines data center market will witness investments of USD 1.61 billion by 2029, growing at a CAGR of 13.58% during the forecast period.
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The Philippines is emerging as a robust data center market driven by a cloud-first strategy, favorable business environment, and a strong regulatory framework. Growing internet penetration, social media usage, and 5G deployment drive data traffic and, thus, the data center sector. The Philippines is witnessing growth in the data center market due to significant digitalization, strong fiber connectivity, growing adoption of technologies like AI, and other factors. In the Philippines, there are about 22 data center facilities, and Manila is a top spot for building colocation data centers, with the presence of several major data center operators. Some major operators in the Philippines market include ePLDT, Globe Telecom, Digital Edge, DITO Telecommunity, and others. The colocation market in the Philippines is set to witness significant growth in demand, especially for wholesale colocation, which is expected to grow at a CAGR of around 53% by 2029. This is due to rising demand for cloud computing. Retail colocation will also witness steady growth.
Investment Opportunities
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The data center market in the Philippines is witnessing notable expansion, offering lucrative opportunities for potential investors. This upward trajectory is fueled by various factors, including the growing need for cloud services, the surge in digital content consumption, and the imperative for businesses to undergo digital transformation.
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In January 2023, internet penetration was around 73.1% of the population, and over 84.45 million active social media users were involved.
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Furthermore, the ongoing digital transformation across various sectors generates a consistent demand for data center services.
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The data center sector in the Philippines is poised to draw investments, particularly within Special Economic Zones (SEZs). The Philippine government actively advocates for SEZs to boost economic growth and create favorable conditions for businesses, including those in the data center industry. Notable Free Trade Zones (FTZs) include the Freeport Area of Bataan (FAB), Clark Freeport and Special Economic Zone (CFEZ), Cagayan Special Economic Zone and Freeport (CSEZFP), and Cavite Export Processing Zone (CPEZ).
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The 2023-2028 Philippine Development Plan (PDP) focuses on making big changes in the economy and society. It aims to create more jobs and quickly reduce poverty by boosting economic growth.
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The Philippines’ budget was carefully planned to bring about positive societal and economic changes. It follows the goals and strategies outlined in the 8-Point Socioeconomic Agenda, Medium-Term Fiscal Framework, and Philippine Development Plan for 2023-2028.
Vendors in the Philippines data center market
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IT Infrastructure Providers: Atos, Broadcom, Cisco Systems, Dell Technologies, Fujitsu, Hewlett Packard Enterprise, Huawei Technologies, IBM, Lenovo, NetApp, and Oracle.
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Data Center Construction Contractors & Sub-Contractors: Arup, Aurecon, Comfac, Data Center Design Corporation (DCDC), First Balfour, Gensler, JSLA Architects, Leighton, Mace, PRONET, Red Engineering, Syska Hennessy Group and Thornton Tomasett.
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Support Infrastructure Providers: ABB, Caterpillar, Cummins, Cyber Power Systems, Eaton, Fuji Electric, KOHLER, Legrand, Mitsubishi Electric, Rolls-Royce, Schneider Electric, Vertiv and ZTE.
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Data Center Investors: Beeinfotech, Bitstop Network Services, Digital Edge, DITO Telecommunity, ePLDT, and Globe Telecom.
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New Entrants: Ayala Land & FLOW Digital Infrastructure, Converge ICT Solutions, Digital Halo, Edge Centres, EdgeConneX, Megawide Construction Corporation, SpaceDC, ST Telemedia Global Data Centres, and YCO Cloud.
The Vietnam & Philippines Data Center Market Report Includes the Investment in the Following Areas:
Why Should You Buy This Research?
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Market size available in the investment, area, power capacity, and Vietnam & Philippines colocation market revenue.
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An assessment of the data center investment in Vietnam & Philippines by colocation, hyperscale, and enterprise operators.
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Investments in the area (square feet) and power capacity (MW) across cities in the country.
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A detailed study of the existing Vietnam & Philippines data center market landscape, an in-depth industry analysis, and insightful predictions about market size during the forecast period.
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Snapshot of existing and upcoming third-party data center facilities in Vietnam & Philippines
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Data Center Colocation Market in Vietnam & Philippines
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The Vietnam & Philippines data center market investments are classified into IT, power, cooling, and general construction services with sizing and forecast.
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A comprehensive analysis of the latest trends, growth rate, potential opportunities, growth restraints, and prospects for the industry.
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Business overview and product offerings of prominent IT infrastructure providers, construction contractors, support infrastructure providers, and investors operating in the industry.
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A transparent research methodology and the analysis of the demand and supply aspects of the industry.
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