Saigon Asset Management (SAM), a Ho Chi Minh City-based US private equity fund, announced the launch of the SAM DigitalHub data center project in southern Binh Duong province on March 4.

The SAM DigitalHub will be built on an area of 50 ha, with a capacity of 150 MW and a total target investment of up to $1.5 billion, in collaboration with the Vietnam-Singapore Industrial Park (VSIP) in Binh Duong.

The project focuses on ensuring a stable power supply and prioritizing the use of renewable energy, in line with Vietnam's energy transition trend, aiming to achieve 50% renewable electricity by 2030.

SAM's goal in building the largest data center in Vietnam is to create modern, world-class infrastructure, attracting both domestic and foreign customers, while making Vietnam an important destination in the digital economy of Southeast Asia.

According to Mr. Louis Nguyen, CEO of SAM,  the data security policy and the requirement to store user data in Vietnam, as stipulated in Decree 53/2022/ND-CP, are important driving factors for the development of data centers in the country.

"Previously, businesses often transferred data to Singapore, but now they are forced to return to Vietnam. This is a business opportunity that cannot be missed," he said.

According to a Cushman & Wakefield report (2023), Vietnam ranks 3rd in Southeast Asia in terms of data center development prospects, thanks to electricity costs that are 40% lower than Singapore, a young population, an internet penetration rate of 80%, and favorable tax policies for technology businesses.