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.
- Read More
JPMorgan upgrades Vietnam stocks to overweight following US tariff deal
JPMorgan has upgraded Vietnam stocks to overweight after the country became the first Southeast Asian nation to reach a preliminary tariff deal with the U.S.
Economy - Fri, July 11, 2025 | 11:38 am GMT+7
Vietnam government bond issuance surges nearly 70% in June
The Hanoi Stock Exchange (HNX) held 16 government bond auctions in June, raising nearly VND30.5 trillion ($1.2 billion), up 68.8% from May.
Finance - Fri, July 11, 2025 | 9:30 am GMT+7
Xuan Truong Company asked to make feasibility study for airport proposal in northern Vietnam
The Ministry of Construction has asked Ninh Binh authorities to prepare a feasibility study on the potential development of an international airport in the province, the ministry said in a report submitted to the Government regarding a proposal from private construction company Xuan Truong.
Companies - Fri, July 11, 2025 | 9:18 am GMT+7
Vietnam-US tariff agreement: A strategic turning point toward deeper integration
The tariff agreement between Vietnam and the U.S. marks not only a trade or diplomatic breakthrough but also reflects a long-term strategic vision, bold foreign policy, and Vietnam’s commitment to deep global integration, writes Nguyen Tuan Viet, an export promotion expert and CEO of Vietgo.
Opinion - Fri, July 11, 2025 | 9:00 am GMT+7
Apple supplier Luxshare enjoys 0% corporate income tax in central Vietnam province
China’s Luxshare-ICT, a key supplier to Apple, reported that its subsidiaries in Vietnam’s central province of Nghe An enjoyed a 0% corporate income tax last year.
Companies - Fri, July 11, 2025 | 8:00 am GMT+7
Intel’s 20 years in Vietnam: $1.5 bln invested, 4 bln chips produced
U.S. chip maker Intel has invested over $1.5 billion in its nearly 20 years in Vietnam and exported more than 4 billion products, contributing over $100 billion to Vietnam’s export revenue.
Industries - Thu, July 10, 2025 | 10:05 pm GMT+7
HCMC’s new master plan should prioritize breakthrough growth in finance, high technology, logistics: expert
Ho Chi Minh City should promote university-oriented urban models and innovation ecosystems built on the “quadruple helix” framework - collaboration among the government, universities, businesses, and the community.
Economy - Thu, July 10, 2025 | 9:42 pm GMT+7
UAE tech firm G42, Vietnamese partners plan $2 bln hyperscale data center in southern Vietnam hub
The United Arab Emirates's (UAE) state-backed firm G42 plans to partner with Vietnamese companies to develop a $2 billion hyperscale data center in Vietnam's southern hub Ho Chi Minh City.
Industries - Thu, July 10, 2025 | 4:22 pm GMT+7
Petrovietnam rakes in $19.5 bln in H1 revenue
State-owned Petrovietnam reported total revenue of VND510 trillion ($19.5 billion) in the first half of this year, driven by strong production performance.
Companies - Thu, July 10, 2025 | 4:03 pm GMT+7
Sustained momentum seen across all Vietnam's real estate sectors: Knight Frank
Ho Chi Minh City and Hanoi saw solid office leasing and apartment market rebounds after the Lunar New Year holiday (Tet). Industrial land surged with record H1 supply and strong absorption, underscoring Vietnam's appeal, while eased visa policies and new direct international flights continue to support 5‑star hotels in both the cities, write Knight Frank analysts.
Real Estate - Thu, July 10, 2025 | 2:37 pm GMT+7
Vietnam's maritime heavyweight VIMC to expand container port services, bulk cargo transport
Vietnam Maritime Corporation (VIMC) will increase revenue and profit via expanding operations in areas such as container port services, bulk cargo transport, and shipping of agricultural products and steel, leveraging existing infrastructure and fleet advantages.
Companies - Thu, July 10, 2025 | 2:15 pm GMT+7
Vietnam infrastructure spending surges 40%
Vietnam’s infrastructure spending surged 40% year-on-year in the first half of the year, fuelled by fast-tracked approvals of projects amid provincial mergers; legal reforms granting provinces more decision-making authority over project approvals; and the streamlining of disbursement processes, write chief economist Michael Kokalari and senior analyst Thai Viet Trinh at VinaCapital.
Consulting - Thu, July 10, 2025 | 11:56 am GMT+7
Phu Quoc enters Travel + Leisure’s top luxury destinations
Phu Quoc’s presence in Travel + Leisure’s Asia-Pacific luxury travel rankings continues to affirm the island’s status as a world-class destination.
Companies - Thu, July 10, 2025 | 11:43 am GMT+7
July dividend wave hits Vietnamese market following AGM season
Ending the 2025 AGM season, a series of Vietnamese companies have announced dates for finalizing the list of shareholders eligible for dividends in July.
Finance - Thu, July 10, 2025 | 11:07 am GMT+7
Cordless technology leader TTI plans to expand manufacturing in southern Vietnam
Germany's Techtronic Industries Company Limited (TTI), a world leader in power tools and outdoor power equipment, wants to expand its Milwaukee plant in Ho Chi Minh City.
Industries - Thu, July 10, 2025 | 8:58 am GMT+7
Vietnam pledges support for AES investment in green energy
Vietnam will continue to facilitate foreign investment and business activities, including those by U.S. enterprises, in line with laws and the country’s evolving development needs, said Tran Luu Quang, Chairman of the Party Central Committee’s Commission for Policies and Strategies.
Companies - Wed, July 9, 2025 | 11:10 pm GMT+7