Vietnamese telecoms provider CMC Corporation has launched a data center company.
Dubbed CMC AI Digital Infrastructure (CMC ADI), the new company will be constructing and operating hyperscale data centers.
The Board of Directors resolved to form the single-member limited liability company, which is fully owned by CMC Corporation, on July 3.
CMC Corporation has invested 300 billion VND ($12.5 million) in establishing the subsidiary which is headquartered in Tan Thuan Export Processing Zone in Ho Chi Minh City.
Nguyen Trung Chinh, chairman of the board of directors and general director of CMC Corp will be the authorized representative of the parent company at CMC ADI, and will also be chairman and general director of CMC ADI.
It is expected that the company will be detailing its hyperscale data center project at CMC's annual general meeting on July 25, 2024.
If the decision is approved, CMC ADI will begin operations and enable CMC to tap into the data center market in Vietnam.
According to its financial report, by the end of the first quarter of 2024, CMC invested over $52.7m in 10 subsidiaries. CMC ADI will represent the 11th subsidiary, and is the company's second-largest spin-off investment.,
"Without data center investment, telecom operators will have no new growth space and will be replaced. Data centers must grow with cloud computing services; otherwise, it will simply be leasing positions. Every three years, global data doubles and Vietnam's data growth rate is even faster," said Nguyen Manh Hung, Minister of Information and Communications.
CMC Technology Group is the second-largest IT and telecommunications company in Vietnam and was founded in 1993.
Vietnam does not currently have a large data center market. However, this year alone has seen several companies express an interest in developing in the country.
Last month, Huawei announced that it was considering a cloud region in Vietnam at some point.
In May 2024, STT GDC announced that it was planning a 60MW data center in Tan Thuan, Vietnam, and took over operations of another in Ho Chi Minh City. That month also saw Alibaba share that it would be building a data center in the country.
According to Data Center Map, Vietnam has 22 data centers across three markets: Ho Chi Minh City, Hanoi, and Da Nang. Operators include FPT Telecom, NTT GDC, Telehouse, Global Data Service, VNPT Data, Viettel, and CMC Telecom, among others.
