Alibaba Plans to Build Data Center in Vietnam to Store Data Locally to Comply With Hanoi’s Regulations, Nikkei Asia Reports
Alibaba is planning to build a data center in Vietnam to store data locally in a move to comply with Vietnamese regulators, Nikkei Asia reported recently.
 Viettel forecasts that the data center market in Vietnam could grow by 15% annually in the near future, potentially accelerating once companies like Alibaba invest – Photo: Innovative Hub
|
The Chinese tech giant has secured a location to house its servers in Vietnam, according to Nikkei Asia. Alibaba’s partners in the project are Viettel and VNPT.
Alibaba Cloud’s solutions director Đặng Minh Tâm said Alibaba is working with the two Vietnamese state-owned companies to store customers’ data locally. However, the data will also be backed up on Alibaba’s own servers in other Asian locations, such as Taiwan and Singapore.
Alibaba plans to build the data center in Vietnam to keep up with data demands in one of Asia’s fastest-growing economies, according to Tâm.
Tâm declined to give a specific timeline for the data center, as the information is not yet public. However, IT experts say it could cost more than $1 billion to build.
“Vietnam is a really ‘hot’ market. There’s a lot of room to grow,” Tâm said.
A key reason for Alibaba wanting its own servers, besides cost considerations, is to ensure better security and control over data.
Viettel IDC – the data center and cloud computing arm of the Viettel Group – told Nikkei that Viettel IDC’s clients, ranging from Alibaba to Microsoft, are increasingly prioritizing environmental, social, and governance (ESG) values.
Viettel forecasts that the data center market in Vietnam could grow by 15% annually in the near future, potentially accelerating once companies like Alibaba invest.
Ngọc Diệp
