Google Considers Building Large Data Center in Vietnam, Marking First by US Big Tech

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Google is exploring the possibility of establishing a large data center in Vietnam, which would be the first such facility by a major US tech company in the country. This move aligns with Vietnam's efforts to boost its digital economy and attract foreign investment.

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Google's Potential Investment in Vietnam

Google, the tech giant owned by Alphabet Inc., is reportedly considering the construction of a large data center in Vietnam

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. This development, if realized, would mark a significant milestone as the first such facility established by a major US technology company in the Southeast Asian nation

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Strategic Importance and Location

The proposed data center is expected to be situated in Hanoi, the capital city of Vietnam

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. This strategic location choice underscores the growing importance of Vietnam in the global tech landscape and its potential as a hub for digital infrastructure in the region.

Investment Scale and Timeline

While the exact investment figure remains undisclosed, sources familiar with the matter suggest that the project could involve a substantial investment, potentially reaching hundreds of millions of dollars

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. The timeline for the project is still under consideration, with Google reportedly in the early stages of exploring this opportunity.

Vietnam's Digital Economy Push

This potential move by Google aligns with Vietnam's ambitious goals to boost its digital economy. The Vietnamese government has set a target for the digital economy to account for 30% of GDP by 2030

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. The establishment of a major data center by a company like Google could significantly contribute to this objective and attract further foreign investment in the tech sector.

Regulatory Landscape and Data Localization

Vietnam's regulatory environment, particularly concerning data localization, plays a crucial role in this development. The country's cybersecurity law, which came into effect in 2019, requires companies to store data locally and set up offices in Vietnam

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. Google's consideration of a data center in the country may be partly influenced by these regulatory requirements.

Potential Impact on Regional Tech Ecosystem

If Google proceeds with this investment, it could have far-reaching implications for Vietnam's tech ecosystem. The presence of a major US tech company's data center could enhance the country's digital infrastructure, potentially leading to improved internet speeds and reliability for local users and businesses

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. Additionally, it might pave the way for other tech giants to consider similar investments in Vietnam.

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