Vietnam’s data-centre boom hits power shortages and land-use hurdles

Vietnam is attracting data-centre investment as firms look beyond Singapore and Malaysia, yet rising electricity tariffs and land-use constraints are curbing progress. Viettel and CMC are disputing tariff rates with the Ho Chi Minh City arm of Vietnam Electricity, while STTGDC withdrew from a planned 60 MW facility, citing an expiring land-use term that ends in 2041. The Ministry of Industry and Trade projects a national power shortfall of about 4,300 MW in 2027, potentially exceeding 14,000 MW by 2030, and recommends limiting data-centre locations in major load centres.

Research firm BMI estimates 148 MW live capacity, 79 MW under construction and 874 MW planned, but expects actual roll-out to lag due to power-side risks. Companies such as Sembcorp Development continue to seek approvals for large-scale sites, while renewable-energy developers see Vietnam’s long-term digital growth as attractive despite infrastructure challenges.