Vietnam Targets AI Infrastructure Growth With 3.5 Billion USD Data Center Proposal

Illustration by John Doe
Illustration by John Doe

A consortium led by SAIGONTEL has proposed a massive AI data center complex in Tay Ninh to bolster Vietnam’s digital infrastructure and computing capacity.

A consortium led by Saigon Technology and Telecommunications JSC (SAIGONTEL) has formally proposed a 3.5 billion USD artificial intelligence data center complex in Tay Ninh province. The project, outlined in a letter of intent submitted to the provincial People’s Committee on August 28, represents a strategic move to bolster Vietnam’s computing capacity to meet rising demand for AI and cloud services.

The proposed facility is designed for a total IT load capacity of 200 MW, with the first phase focusing on a 100 MW installation. SAIGONTEL, a member of the Saigon Invest Group, is collaborating with World Harmony Co., Ltd. (WVU) and SAIF Eagle II Investment Co., Ltd. to execute the development. The consortium intends to utilize approximately 20 hectares within the Nam Tan Tap Industrial Park for the site.

Groundbreaking for the initial phase is targeted for the fourth quarter of 2026, with commercial operations expected to commence in 2027. This timeline remains contingent on the finalization of power supply plans and the completion of formal investment policy approval procedures. The project dossier is currently undergoing review by Tay Ninh authorities and the power sector to ensure alignment with national infrastructure regulations.

The consortium brings together diverse expertise to manage the scale of the investment. WVU, which specializes in high-tech infrastructure and renewable energy, is currently developing a 32 MW hyperscale data center in Taipei. SAIF Eagle II, backed by an international financial institution managing nearly 10 billion USD in assets, will serve as a primary investor. The development of the Nam Tan Tap Industrial Park is managed by a SAIGONTEL subsidiary, ensuring local operational oversight.

This proposal arrives as Vietnam seeks to transition from an adopter of existing digital technologies to a developer of its own AI ecosystem. Government objectives for 2030 include integrating AI into 60% of business operations and administrative decision-making processes. The scale of this 100 MW first phase would position the complex among the largest data centers in the country, providing a foundation for high-tech activities in the southern key economic region.

Beyond the immediate construction, the project aims to stimulate secondary economic growth in Tay Ninh. By establishing a high-capacity data hub, the province expects to attract foreign direct investment from technology firms requiring proximity to robust computing resources. This influx of capital is intended to create favorable conditions for the broader southern economic region to modernize its industrial base.

The shift toward large-scale data complexes reflects a broader national trend of prioritizing digital self-reliance. As Vietnam accelerates its digital transformation, the need for robust computing infrastructure has become a critical bottleneck for domestic AI development. By securing this level of investment, Tay Ninh aims to attract global technology firms and enhance its competitiveness as a regional digital hub.

The significance of this project extends beyond local economic development to the broader goal of regional technology connectivity. Policymakers are increasingly focused on linking infrastructure investments with national research priorities and the training of a specialized workforce. This alignment is essential for ensuring that the country can independently manage, regulate, and sustain its growing digital assets over the next two decades.

Long-term success will depend on the ability of the consortium to integrate renewable energy sources and maintain technical reliability at scale. The project serves as a test case for Vietnam’s capacity to host hyperscale infrastructure while maintaining the safety and efficiency standards required for modern AI applications. Future milestones will involve finalizing the power grid integration and establishing the operational frameworks necessary for large-scale AI deployment.

The project also underscores the importance of human capital in the digital era. As the government emphasizes the need for personnel in management, regulation, and technical support, this data center will likely serve as a training ground for local talent. Developing these internal capabilities is a prerequisite for Vietnam to independently conduct safety assessments and verify technical calculations for its evolving digital economy.

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