CMC Corporation Invests USD $12.5M in New Data Centre Subsidiary, Set to Construct Hyperscale Data Centres in Vietnam
Vietnam's Data Centre Market Looks Primed for an Expansion
Vietnamese ICT company CMC Corporation has launched a data centre subsidiary—CMC AI Digital Infrastructure, or CMC ADI—with an initial investment of an estimated USD $12.5 million. The subsidiary is set to construct and operate hyperscale data centres in Vietnam.
It will be headquartered in the Tan Thuan Export Processing Zone in Ho Chi Minh City.
According to sources, CMC Corporation will go into more detail about its ambitious hyperscale data centre plans at the company’s annual general meeting on 25th July.
CMC Corporation Continues Expansion as Vietnam’s Data Centre Market Booms
The CMC ADI will be CMC Corporation’s 11th subsidiary and the company’s second-largest spin-off investment. CMC Technology Group, founded back in 1993, is Vietnam’s second-largest IT and telecommunications company.
Its foray into the hyperscale data centre vertical is to be expected given the amount of data being generated and stored nowadays. It is true even in Vietnam, where data is expected to grow at an even faster rate. However, even with this data explosion, Vietnam currently has no large data centre market. That might be changing, with CMC entering the market and Huawei previously stating it is looking at building its own cloud region in the country.
Another player, ST Telemedia Global Data Centres is also reportedly eyeing a data centre investment in Vietnam, this time through a joint venture with VNG Corporation, a leading Vietnamese tech firm. If the two companies’ plan pushes through, they will co-build and co-operate data centres in Ho Chi Minh City.
Alibaba has also announced plans to build data centres in Vietnam, whose data centre market appears ready for a significant expansion in the coming years.
