Insight & Analysis

Press release: ST Telemedia Global Data Centres expands into Vietnam through a joint venture with VNG to build and operate data centres

Published: May 2024

15th May 2024ST Telemedia Global Data Centres (STT GDC), one of the world’s fastest-growing data centre providers, has announced a joint venture partnership with VNG Corporation, a leading technology company in Vietnam, for the development, construction, and operation of data centre projects in Ho Chi Minh City, Vietnam.

Press release news paper

This partnership entails the continuation of operations at STT VNG Ho Chi Minh City 1 (previously referred to as VNG Data Center, situated in the Tan Thuan area) and the establishment of a new facility, STT VNG Ho Chi Minh City 2. The second data centre building, situated 1.5km away within the same Tan Thuan cluster, is expected to be operational in the first half of 2026. Headquartered in Singapore, STT GDC offers colocation services globally through more than 95 data centres across over 20 business markets and, together with VNG’s local expertise and engineering, aims to set new international data centre standards, supporting Vietnam’s digital transformation.

STT VNG Ho Chi Minh City 1 is an Uptime Tier-3 rated facility. It is also ISO 27001, ISO 27017, ISO 27018 and PCI-DSS certified, offering a total IT load capacity of 9.6 megawatts. It is designed to meet the global standards of local and international banks, financial institutions, Internet exchange operators, local, regional, and international network service providers, content delivery network providers, edge computing cloud providers and other enterprise segments. Strategically positioned as Ho Chi Minh City’s first carrier-neutral connectivity hub, it provides network coverage from major local telecommunication operators and services including cloud access to leading providers, local leased lines, and disaster recovery workspace. Customers in STT VNG Ho Chi Minh City 1 will be able to establish a direct peering connection to VNGGames and VNG Cloud.

A second data centre building – STT VNG Ho Chi Minh City 2 – will offer a development potential of up to 60 megawatts of IT load capacity once fully constructed. It 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.

“We are thrilled to partner with VNG in our venture to build and operate data centres in Vietnam. VNG’s deep local knowledge, carrier neutrality, extensive customer and partner network and commitment to technological innovation perfectly align with STT GDC’s vision. Together, we bring a unique blend of global and local expertise to deliver a new international standard of data centre solutions, supporting Vietnam’s digital transformation journey,” said Lionel Yeo, Chief Executive Officer, Southeast Asia, STT GDC. “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.”

“We believe our partnership with STT GDC, a globally recognised leader in data centre operations, will set new service standards worldwide for Vietnam’s data centre industry as well as introduce our 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,” stated Le Hong Minh, Founder & CEO of VNG Corporation.

Vietnam’s digital economic growth is forecasted to grow 20% by 20251, almost twice the projected GDP growth2, underpinned by a thriving digital ecosystem and a booming ecommerce sector3. Progressive government policies, increasing data consumption, enhanced connectivity, and a commitment to modernising the nation’s infrastructure have all helped position Vietnam as an emerging digital powerhouse in the Southeast Asian region.

  1. e-Conomy SEA 2023, Google, Temasek, Bain & Company, 2023, page 81

  2. e-Conomy SEA 2023, Google, Temasek, Bain & Company, 2023, page 81

  3. e-Conomy SEA 2023, Google, Temasek, Bain & Company, 2023, page 120

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