STT GDC Vietnam Expansion to Fuel Digital Transformation

ST Telemedia Global Data Centres (STT GDC) announces its expansion into Vietnam with a new 60 megawatt (MW) facility in Ho Chi Minh City.

The data centre provider is taking over an existing data centre in the city, in addition to building a second facility on site. It is partnering with local Internet firm VNG to make this happen and accelerate digital transformation across the country.

The joint partnership between STT GDC and VNG will see both companies working to develop, construct and operate multiple data centre projects in Ho Chi Minh City.

This comes during a time of mass data centre innovation and investment across Asia, with plenty of businesses seeking to be a part of ground-breaking transformations happening across the industry. In fact, the data centre colocation market across the Asia-Pacific region (APAC) is expected to overtake North America and reach US$19.3bn in the near future.

Vietnam at “the cusp” of significant data centre growth

Digital economic growth in Vietnam is surging forward at pace, forecasted to grow 20% by 2025. This is almost twice the projected GDP growth, according to STT GDC. 

The country has a thriving digital ecosystem and a booming e-commerce sector, with increasing data consumption, enhanced connectivity and a commitment to modernising infrastructure contributing to positioning the nation as an emerging digital powerhouse in Southeast Asia.

As a result, Vietnam’s data centre industry is booming. It was projected in 2023 that the Vietnamese data centre market will reach US$1.6bn by 2025, thanks to increasing demand for cloud services across the region.

The country’s data centre operations are mainly concentrated in Ho Chi Minh City, Da Nang and its capital, Hanoi. In addition to STT GDC, some other major operators in the country include FPT Corporation, KDDI and Viettel.

STT GDC’s partnership with VNG will continue operations at the existing data centre facility (STT VNG Ho Chi Minh City 1) in the Tan Thuan area, but will also establish a new facility. Referred to as STT VNG Ho Chi Minh City 2, the building is expected to be operational in the first half of 2026.

The company will also be seeking to harness VNG’s local knowledge and expertise in engineering to set new international data centre standards, in addition to supporting Vietnam’s digital growth.

“We believe our partnership with STT GDC, a globally recognised leader in data centre operations, will set new service standards worldwide for Vietnam's data centre industry as well as introduce our products and services to international markets,” says Le Hong Minh, Founder and CEO of VNG Corporation. “Together, we are advancing the AI Cloud movement to support both regional and local businesses, in line with key trends in the digital economy.”

Providing critical networks

Headquartered in Singapore, STT GDC offers colocation services globally through more than 95 data centres across over 20 business markets.

The first facility was strategically positioned as Ho Chi Minh City’s first carrier-neutral connectivity hub, providing network coverage from major local telecommunication operators and services. This includes cloud access to leading providers, local leased lines and disaster recovery workspace.

Likewise, the new STT VNG Ho Chi Minh City 2 will offer a development potential of up to 60MW of IT load capacity once fully constructed. It will be connected to the first data centre via a diverse network infrastructure, facilitating ease of connectivity and expansion.

The facility will also have access to nearby substations, critical telecommunications networks, transportation links, logistics, business and industry hubs, in addition to other provinces via the HCMC Outer Zone Expressway. 

“We are thrilled to partner with VNG in our venture to build and operate data centres in Vietnam. Together, we bring a unique blend of global and local expertise to deliver a new international standard of data centre solutions, supporting Vietnam's digital transformation journey,” says Lionel Yeo, Chief Executive Officer, Southeast Asia, STT GDC. 

“Vietnam is at the cusp of significant growth in the data centre market, and we firmly believe that the combined strengths of both partners will enable us to serve the local market with agility and pace.”

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