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Pursuing green digital objectives necessitates a balanced approach

Vietnam Experiences Rapid Growth in Data Center Development, Striving for Balance Between Technological Progress and Environmental Sustainability

Achieving digital sustainability necessitates a balance approach
Achieving digital sustainability necessitates a balance approach

Pursuing green digital objectives necessitates a balanced approach

In the realm of technology, digital transformation is a driving force, with the need for digital infrastructure at its core, according to technology expert Tien Hoang. This transformation is particularly evident in Vietnam, where the IT industry is rapidly expanding, consuming 6-10% of global electricity and emitting 3.7% of total greenhouse gas emissions.

Among the key players in this digital revolution is Hyra Network, developed by Hyra Tek JCS in Vietnam. The company plans to build a large-scale decentralized AI infrastructure, including a decentralized GPU training network called Hyra Zone. As of August 2025, over 2.7 million devices are connected worldwide, suggesting large-scale AI data center capabilities envisioned around or before 2025.

The expansion of data centres and digital infrastructure, however, presents a paradox. While it supports climate change adaptation and mitigation, it also consumes large amounts of energy and generates significant waste. To address this, all new data centres in Vietnam must meet global green standards, with a Power Usage Effectiveness index of newly built facilities not exceeding 1.4.

Local technology firms such as VNPT, Viettel, CMC, FPT, and VNG are actively expanding their data centre networks. Viettel, for instance, is planning 11 large-scale data centres with combined capacity exceeding 350MW, representing about 40% of the country's total. Once completed, Viettel's data centre will be among the 10 largest in Southeast Asia.

In April, Viettel began building its high-tech data centre and research and development complex in Ho Chi Minh City. The data centre market in Vietnam is projected to reach $1.75 trillion by 2030, growing at a compound annual rate of almost 18%.

To ensure sustainability, innovation in software and hardware design is increasingly focusing on energy efficiency. This includes low-carbon cloud services and algorithms requiring less computing power. The European Chamber of Commerce in Vietnam's Digital Sector Committee emphasized the need to balance growth and sustainability by considering the entire digital ecosystem, including powering infrastructure with renewable energy, managing devices across their lifecycle, and designing innovation with efficiency in mind.

The Ministry of Science and Technology is rolling out solutions focused on greener digital infrastructure. Last month, LG CNS, VNPT, and Korea Investment Real Asset Management signed an MoU to jointly develop a hyperscale AI data centre in Vietnam. IPTP Networks also launched the AIDC DeCenter Data Centre in Danang, Vietnam, in late August, with a capacity for 1,000 racks, a minimum power output of 10MW, and total capital of $200 million. Construction is expected to begin in March 2026.

Moreover, Bruno Sivanandan, co-chair of the committee, stated that powering data centres and telecom networks with renewable energy reduces the digital economy's footprint, while stronger e-waste management and circular economy practices can conserve valuable resources. By 2024, Vietnam had 51MW of operational data centre capacity, 11MW under construction, and a further 28MW planned.

As digital transformation continues to reshape Vietnam's landscape, the focus on sustainable practices in the data centre sector is crucial for ensuring a greener future.

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