Vietnam forecast to bring high returns to data center investments: Savills
Emerging markets such as Vietnam or India are becoming hot spots for data center investments as they are expected to yield high returns ranging from 9.5-10% annually, according to Savills Vietnam.

Tech giants such as Microsoft, Meta, Alphabet, and Amazon invested over $200 billion, mainly in data centers and AI-related tools development. Photo courtesy of Synnexfpt.
Vietnam holds a competitive edge with its low labor costs and young workforce, said Thomas Rooney, associate director of industrial services at Savills Hanoi.
However, he stressed the need to prioritize completing legal frameworks, creating investor-friendly conditions, developing reliable electricity infrastructure, ensuring cybersecurity and grid power safety, raising awareness about data, and promoting data sharing. He also suggested Vietnam learn from successful models of building sustainable AI ecosystems.
Savills reported that global investment in the data center market reached a new peak in 2024, driven by the growing demand for artificial intelligence (AI). It cited a study by McKinsey published at the end of 2024 as showing that global demand for data centers could increase by 19-22% from 2023-2030, reaching annual demand from 117-219 GW, while current demand is only at 60 GW.
Last year, tech giants such as Microsoft, Meta, Alphabet, and Amazon invested over $200 billion, mainly in data centers and AI-related tools development. Investment activities in AI data center development are expected to continue to rise in 2025 with many large investments announced.
Microsoft, for example, announced a plan to invest $128 billion in developing AI infrastructure systems and data centers worldwide, including deploying $3 billion in India and $2.9 billion in Japan. Additionally, U.S. President Donald Trump unveiled Stargate - a data center infrastructure investment project to support AI development in the U.S. with an initial investment of $100 billion, which is expected to reach up to $500 billion.
The race in the Asian market
According to Savills, at present, most data centers in Asia are not equipped to handle AI servers. These centers typically have a capacity of 10-40 MW, catering primarily to developed markets. This presents an opportunity for investment to upgrade and build new data centers with larger capacities to support AI development.
A report from MSCI Real Capital Analytics showed that total data center transactions in Asia reached $21.6 billion in 2024, nearly 10 times the amount in 2023. Leading the way are developed market such as Australia (39%), Japan (31%), Singapore (8%), and Hong Kong (8%).

Thomas Rooney, associate director of industrial services at Savills Hanoi. Photo courtesy of Savills.
Noteworthy investments include KKR and Singapore Telecommunication (SingTel) investing $1.3 billion in the ST Telemedia Global Data Centers project in Singapore. The Canada Pension Plan Investment Board (CPPIB), through a joint venture with Pacific Asset Management, has injected $686 million into developing a super data center in South Korea. CPPIB is collaborating with Japan’s Mitsui & Co to build large-scale facilities in Japan and with Singapore’s Keppel Corporation to expand data centers across Asia and Europe.
In Southeast Asia, ASEAN countries have introduced national AI strategies. Singapore’s NAIS 2.0 integrates technology into multiple sectors, while Vietnam’s 2030 strategy identifies AI as a key technology for the Fourth Industrial Revolution, boosting production capacity, national competitiveness, and promoting sustainable economic growth.
Thomas Rooney pointed out that demand for data centers in Asia is especially high in Group 1 markets such as Seoul, Tokyo, Hong Kong, Kuala Lumpur, Singapore, and Bangkok. However, rental price increases in these markets are slowing. In contrast, Group 2 markets like Johor, Hanoi, Ho Chi Minh City, and Bengaluru are showing growth, with rental prices on the rise.
With competition intensifying in the region, returns on investments in Group 1 markets are starting to decrease, with an average of around 5%. Meanwhile, investing in data centers in emerging markets like Vietnam or India is expected to yield higher returns, ranging from 9.5-10%, drawing more investors, Rooney concluded.
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