Executive Viability Abstract
This feasibility study evaluates the development of high-density, AI-ready data centers in Vietnam. Driven by the National Digital Transformation Program and the surge in localized AI model training, the project targets a 20MW facility in Ho Chi Minh City. The study indicates strong viability based on Vietnam's competitive power costs, strategic location, and growing demand for GPU-as-a-Service (GPUaaS) and data sovereignty compliance.
Return on Investment
18.5%
Payback Span
6.2 years
Net Present Value
$42,500,000
IRR Index
22%
## Market Analysis
Vietnam's data center market is projected to reach $1.04 billion by 2028, growing at a CAGR of 10.7%. The shift toward AI-specific infrastructure is driven by a 15% annual increase in local cloud adoption. Key drivers include Decree 53/2022/ND-CP requiring local data storage and the rapid expansion of the digital economy (e-commerce, fintech).
## Capex Summary
Total estimated capital expenditure for a 20MW Tier III facility is $180M - $220M. Primary allocations:
- Infrastructure & Shell: 25%
- Power & Cooling (Liquid Cooling for AI): 35%
- IT/AI Hardware (NVIDIA H100/A100 clusters): 30%
- Licensing & Land: 10%.
## Revenue Model
Revenue is generated through four primary streams:
1. **Colocation Services**: Standard rack leasing for enterprise clients.
2. **GPU-as-a-Service (GPUaaS)**: High-margin hourly/monthly compute rentals for AI training.
3. **Managed Services**: Cybersecurity and disaster recovery.
4. **Connectivity**: Cross-connect fees and bandwidth reselling.
## ROI Summary
The project demonstrates a strong ROI of 18.5% over a 10-year horizon, with significantly higher margins on AI-optimized racks compared to traditional colocation.