Tencent-invested VNG, Singapore's ST Telemedia to build second data center in HCMC

Ho Chi Minh City-based game developer VNG Corporation and Singapore-headquartered ST Telemedia Global Data Centres (STT GDC) will jointly build a 60-MW data center in the southern metropolis.

The two sides established a joint venture for the move on Wednesday as a continuation of their cooperation that has already built the VNG Data Center in the same city.

STT Ho Chi Minh City 2, the new data center, will be located just 1.5 kilometers away from of STT VNG Ho Chi Minh City 1. Both facilities are located at the Tan Thuan Export Processing Zone in District 7. The second facility is expected to become operational in the first half of 2026.

STT GDC offers colocation services globally through more than 95 data centers across over 20 business markets and, together with VNG's local expertise and engineering, aims to establish new data centers of international standards to support Vietnam's digital transformation.

STT VNG Ho Chi Minh City 1 is an Uptime Tier-3 rated facility with a total IT load capacity of 9.6 MW. It is designed to meet global standards of local and international banks, financial institutions, Internet exchange operators, local, regional and international network service providers, content delivery network providers, edge computing cloud providers, and other enterprise segments.

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

It will have access to nearby substations, critical telecommunications networks, transportation links, logistics, business and industry hubs, as well as other provinces via the HCMC Outer Zone Expressway.

“Vietnam is at the cusp of significant growth in the data center market, and we firmly believe that the combined strengths of both partners will enable us to serve the local market with agility and pace,” said Lionel Yeo, CEO, Southeast Asia, STT GDC.

A host of foreign companies are looking to invest in data centers in Vietnam, given the nation’s substantial growth potential. At present, the market is dominated by local telecommunication firms, according to property service provider Jones Lang LaSalle (JLL).

Real estate consultant Savills has said that Vietnam’s cloud and data center industry is one of the fastest growing in the world,driven by the digitalization of the local SME sector, a young and digitally literate population, the arrival of 5G, and the need for self-sufficiency in digital infrastructure.