Tech giant Alphabet, the parent company of Google and YouTube, is planning to build a large data center in Vietnam, according to a recent report by Reuters.
Reportedly, the project has not yet been finalized, and it isn’t guaranteed that it will move forward. But if it does, it would mark the first investment in Vietnam from a high-profile U.S. technology company.
The data center would be located in proximity to Ho Chi Minh City, the country’s most populous city. If everything goes to plan, it could potentially open in 2027. The investment would be worth a projected $300 million to $400 million.
According to sources familiar with the matter, Alphabet has plenty of motivations to open a data center in Vietnam. The country represents a growing market for its products, and the company has a large base of cloud services clients. Additionally, the country’s expanding digital economy is seen as an opportunity.
Vietnam has long been avoided by big tech companies due to its strict regulations as well as poor infrastructure and unsatisfying incentives. However, things seem to be changing for the better in recent years. Besides Alphabet, Chinese e-commerce giant Alibaba is reportedly considering building a data center in Vietnam as well.