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
Vingroup to develop 4,600ha coastal urban project in northern Vietnam
A consortium of Vingroup (HoSE: VIC) and its real estate arm Vinhomes (HoSE: VHM) will develop a 4,600-hectare coastal urban complex in Ha An ward, Quang Ninh province, following local authorities’ approval of a zoning plan.
Real Estate - Fri, October 17, 2025 | 8:30 am GMT+7
Indonesia resumes int’l carbon trading after 4-year hiatus
Indonesian President Prabowo Subianto has issued a new decree to restart international carbon emissions trading after a four-year hiatus.
Southeast Asia - Thu, October 16, 2025 | 9:23 pm GMT+7
Investors seek 2-year delay for $2.56 bln LNG power project in northern Vietnam, citing equipment hurdles
Investors of a $2.56 billion LNG-fired power plant in Hung Yen province have proposed delaying the project’s commercial operation schedule by two years due to difficulties securing key equipment.
Energy - Thu, October 16, 2025 | 9:04 pm GMT+7
Vietnam to soon raise taxpayers' personal deduction: official
The personal income tax deduction in Vietnam is "very likely" to increase to VND21.7 million ($823,940) per month, including VND15.5 million (588,530) for the taxpayer and VND6.2 million ($235,410) for each dependent.
Finance - Thu, October 16, 2025 | 6:25 pm GMT+7
Business confidence climbs as reforms gain traction amid global headwinds: EuroCham Vietnam
The index climbed to 66.5, surpassing pre-tariffs level and reaching its highest in three years – showcasing resilience and adaptability amid global headwinds and evolving U.S. tariff pressures.
Economy - Thu, October 16, 2025 | 4:36 pm GMT+7
Vietnam's stock market watchdog suspends two Grant Thornton auditors
Vietnam's State Securities Commission (SSC) has suspended two auditors from Grant Thornton Vietnam after determining that the 2024 audited financial statements of Saigon Water Infrastructure Corporation (HoSE: SII) failed to meet required standards.
Finance - Thu, October 16, 2025 | 3:35 pm GMT+7
Law No. 56 a major policy breakthrough for Vietnam's stock market development
The Law No. 56, effective January 1, 2025, is one of the major legal breakthroughs in recent years that will enhance the transparency and operational efficiency of the Vietnamese stock market.
Finance - Thu, October 16, 2025 | 2:30 pm GMT+7
WHA Group breaks ground on smart technology industrial zone in central Vietnam
Thailand's WHA Group on Tuesday broke ground on a world-class, modern, and environmentally friendly industrial zone in central Vietnam, namely the WHA Smart Technology Industrial Zone-Thanh Hoa.
Real Estate - Thu, October 16, 2025 | 2:00 pm GMT+7
Vietnam a key partner in Murphy Oil’s global strategy: exec
Vietnam remains a key partner in Murphy Oil’s global business strategy, said Eric Hambly, the U.S. corporation's president and CEO.
Companies - Thu, October 16, 2025 | 12:06 pm GMT+7
VNPT, Qualcomm debut Vietnam’s 1st original design-based excellence center
State-owned Vietnam Posts and Telecommunications Group (VNPT) and Qualcomm have officially launched the VNPT-Qualcomm Excellence Center (VQEC), the first facility in the country to operate under an original design co-development model using Qualcomm’s core technologies.
Companies - Thu, October 16, 2025 | 8:41 am GMT+7
Indonesia enjoys steady growth in nine months
Indonesia's Ministry of Finance on Tuesday announced the country’s 2025 budget performance as of September, reporting that Southeast Asia’s largest economy continued to post steady growth despite global economic uncertainties.
Southeast Asia - Wed, October 15, 2025 | 9:53 pm GMT+7
Malaysia on progressive path towards AI nation status: experts
Malaysia is on a progressive track towards becoming an Artificial Intelligence (AI) nation by 2030, a goal seen as achievable under Budget 2026 - the Malaysian Government’s fiscal and policy framework for 2026.
Southeast Asia - Wed, October 15, 2025 | 9:44 pm GMT+7
Thailand steps up development of semiconductor industry
Thailand’s Board of Investment (BOI) plans to propose a new national semiconductor and advanced electronics policy board to the government, which will spearhead Thailand’s semiconductor development strategy.
Southeast Asia - Wed, October 15, 2025 | 9:40 pm GMT+7
ASEAN sets ambitious energy targets
Senior energy officials from ASEAN member nations and Timor-Leste on Tuesday convened in Kuala Lumpur, Malaysia, to finalize key outcomes and policy recommendations to be submitted to the 43rd ASEAN Ministers on Energy Meeting (AMEM).
Southeast Asia - Wed, October 15, 2025 | 9:33 pm GMT+7
Sun Group gets nod for $375 mln inland waterway tourism project in central Vietnam
A subsidiary of Sun Group, one of Vietnam’s leading real estate developers, has received approval to invest VND9.88 trillion ($375 million) in an inland waterway tourism project in the central coastal city of Danang.
Industries - Wed, October 15, 2025 | 5:21 pm GMT+7
Vietnamese luxury car dealer Haxaco’s business slumps, stock nears two-year low
The operations of Hang Xanh Automobile Service JSC or Haxaco (HoSE: HAX), known as the largest distributor of Mercedes-Benz vehicles in Vietnam, are under pressure as consumers tighten spending and competition among car brands intensifies.
Companies - Wed, October 15, 2025 | 5:13 pm GMT+7






















