Singapore-based ST Telemedia Global Data Centres (STT GDC) has announced a joint venture with Vietnamese tech unicorn VNG Corporation for the development, construction and operation of data centre projects in Ho Chi Minh City, Vietnam.
The partners will build a new data centre with a potential capacity of up to 60 megawatts (MW) once fully constructed in 2026.
STT GDC is looking to continue expansion of the first data centre building STT VNG Ho Chi Minh City 1 which will yield 9.6 megawatts total.
According to sources, the firm is targeting a development cost ranging between US$7 million (S$9.4 million) and US$10 million (S$13.4 million) per MW for the new facility.
The companies said the new data centre will be connected to the first data centre via diverse and ample network infrastructure, facilitating ease of connectivity and expansion.
It will have access to nearby substations, critical telecommunications networks, transportation links, logistics, business and industry hubs, as well as other provinces via the HCMC Outer Zone Expressway.
Lionel Yeo, Chief Executive Officer, Southeast Asia, STT GDC said, “Vietnam is at the cusp of significant growth in the data centre market, and we firmly believe that the combined strengths of both partners will enable us to serve the local market with agility and pace."
VNG Founder and CEO Le Hong Minh said the JV would set new service standards worldwide for Vietnam's data centre industry as well as introduce VNG’s products and services to international markets.
“Together, we are advancing the AI Cloud movement to support both regional and local businesses, in line with key trends in the digital economy,” he added.
