Vietnam Data Center Cooling Market

Vietnam Data Center Cooling Market Analysis

The Vietnam Data Center Cooling Market size is estimated at USD 26.36 million in 2025, and is expected to reach USD 54.78 million by 2031, at a CAGR of 12.97% during the forecast period (2025-2031).

• In Vietnam, the mean annual temperatures are around 24 to 25 °C, in which the coldest month has a mean temperature of 17 to 20 °C and the hottest month has a mean temperature of 29 to 30 °C.
• Extreme weather events are a threat to physical infrastructure such as power stations, electricity cables, and data center buildings, which drives the demand for data center cooling solutions.
• The upcoming IT load capacity of the Vietnamese data center cooling market is expected to reach around 250 MW by 2030. The country's construction of raised floor area is expected to increase by more than 800 thousand sq. ft by 2030.
• The country's total number of racks to be installed is expected to reach 43.9 thousand units by 2030. Ho Chi Minh City is expected to house the maximum number of racks by 2030.
• There are close to 7 submarine cable systems connecting Vietnam, and many are under construction. Vietnam's Ministry of Information and Communications (MIC) approved a strategy to enhance the country's international fiber optic cable system. By 2030, Vietnam aims to add at least ten undersea cables, expanding its undersea routes to a minimum of 15.

Vietnam Data Center Cooling Market Trends

IT and Telecom to Hold Significant Share

• The telecommunications industry is looking toward institutionalization to supervise and promote digital transformation, making the process a foundation for developing the digital economy and society.
• The Vietnam Radio and Electronics Association suggested that 80% of Vietnamese data are created abroad. The country is taking necessary measures to produce its data locally and aims to generate revenues from the national data infrastructure, which may account for 1% of the GDP by 2025. Interconnecting data centers and providing connectivity are vital to network requirements, resulting in high storage resources and energy consumption, necessitating data center cooling.
• About 80% of the data centers in Vietnam are operated by local telecommunication companies. Major players include VNPT IDC (7 facilities, 2 of 10,000 sq. m, others under 2,000 sq. m in addition to joint-ventures in other projects of large scales from 5,000 - 6,000 sq. m), Viettel IDC (5 facilities, 1 of 10,000 sq. m, 3 of 3,000 - 6,500 sq. m, and 1 of 500 sq. m), and other players.
• Data centers exhibit energy and carbon-intensive properties due to the constant operation of cooling systems, IT equipment, power generators, and facility lighting. Carbon emissions from data centers contribute up to 3.7% of total greenhouse gas emissions, placing it ahead of aviation (2.4%), shipping (2.3%), and rice cultivation (1.5%).
• The deployment of 5G networks may boost the region's digital economy and lead to higher demand for high-bandwidth networking infrastructure, leading to major data center constructions and cooling solutions. For instance, in November 2021, Amazon Web Services (AWS) announced AWS outposts in Vietnam.
• Vietnam's data center cooling market is thriving, with both local and foreign companies looking to develop more DCs in Southeast Asian countries as demand for data storage continues to grow. A key reason is the implementation of a new data localization rule in Vietnam in 2022, which resulted in increased activity in DC investments. Efficient management of thermal loads within telecom facilities and electronic enclosures is essential, which may lead to increased demand for major cooling solutions.

Liquid Cooling to Register Significant Growth

• With the implementation of the data localization law in Vietnam, data center investments are increasing Y-o-Y. The country is witnessing investments from new entrants such as Data Center First, Edge Centres, Infracrowd Capital, and Worldwide DC Solutions. Existing operators are expanding their presence in the country by investing in new facilities and expanding existing ones.
• Regarding network connectivity, the country has five existing submarine cables connecting the countries in Asia-Pacific and Europe, Middle East and Africa (EMEA) and the United States. Asia Direct Cable (ADC) and Southeast Asia-Japan Cable 2 (SJC2) are the two upcoming submarine cables expected to be operational by 2023/2024.
• Vietnam has greenlit a National Digital Transformation Program, targeting completion by 2025 and setting sights on 2030. The initiative aims to usher in a digital shift across governance, economy, and society while also positioning Vietnamese tech firms on the global stage.
• In Asia, the demand for high-performance computing (HPC) is surging, spurred by escalating cyber threats and a push for superior technological prowess. Leading Southeast Asia in cyber threats, Vietnam has seen the establishment of the National Supercomputing Centre (NSCC), which is now harnessing cutting-edge technologies to fortify its HPC systems and networks. Consequently, as AI and HPC gain traction, Vietnam's appetite for liquid cooling solutions is poised to grow.

Vietnam Data Center Cooling Industry Overview

The Vietnamese data center cooling market is characterized by consolidation among key players, who have gained a competitive edge in recent years. Mitsubishi Electric Corporation, Schneider Electric SE, and Rittal Gmbh & Co. KG are among the major players dominating this market. These industry leaders, holding significant market shares, are dedicated to expanding their customer base across the region. They employ strategic collaborative initiatives to enhance their market share and overall profitability.

• March 2023: STULZ, a Hamburg-based company specializing in mission-critical air conditioning, announced a significant advancement in its industry-leading CyberAir 3PRO DX series. Some units in this series are now compatible with the low-global-warming-potential (GWP) refrigerant R513A. This breakthrough development underscores the company's ongoing commitment to providing the most sustainable air conditioning systems for data centers. Furthermore, STULZ expanded its product portfolio to incorporate R513A refrigerant in more of its offerings, reinforcing its dedication to eco-friendly solutions.

Vietnam Data Center Cooling Market Leaders

Vietnam Data Center Cooling Market News

• August 2023: Cooling module maker Asia Vital Components (AVC) planned to expand its production site in Vietnam to meet the growing demand from its US customers. AVC Vietnam, the company's Vietnam subsidiary, operates a USD 50 million production plant covering 10 hectares at the Dong Van 3 Industrial Park in Ha Nam province near Hanoi.
• March 2023: LiquidStack announced a significant investment from HVAC company Trane Technologies to propel immersion cooling technology to new heights. LiquidStack's proprietary liquid immersion cooling technology represents a leap in sustainable data center cooling. These immersion cooling solutions align seamlessly with the company's ambitious sustainability goals, including a commitment to reduce carbon emissions within its customer base by a staggering 1 billion tons by 2030 and the ultimate achievement of net-zero emissions by 2050. This technology also offers substantial benefits to its users, contributing to their sustainability objectives.