LG CNS is moving ahead with the development of a hyperscale artificial intelligence (AI) data center in Vietnam. Following the receipt of a project to build an AI data center in Indonesia, the first among domestic corporations, it is expanding its business to Vietnam.
LG CNS announced on the 12th that it signed a memorandum of understanding (MOU) for cooperation in the development of a data center in Vietnam with Vietnam's largest state-owned telecommunications corporation, Vietnam Posts and Telecommunications Group (VNPT), and Korea Investment Real Asset Management at the 'Korea-Vietnam Business Forum' held at Lotte Hotel Seoul.
VNPT is leading Vietnam's digital transformation (DX) projects, including ▲ telecommunications services ▲ data centers ▲ cloud ▲ smart cities. Prior to the MOU, VNPT and Korea Investment Real Asset Management visited the Hanam data center operated by LG CNS on the 11th to evaluate LG CNS's data center technology and business capabilities.
Through this MOU, the three companies will collaborate to develop a hyperscale AI data center in Vietnam. To this end, each company will form a separate working group consisting of experts to cooperate in building AI infrastructure, covering data center facilities as well as hardware equipment such as servers and storage, as well as network areas including communications and lines.
The data center market in Southeast Asia, including Vietnam, is rapidly growing due to the spread of AI and cloud-based DX and the government's increased investment in digital infrastructure. According to the U.S. market research firm Arizton, Southeast Asia's data center market size is expected to grow approximately 14% annually from $13.7 billion (about 19 trillion won) in 2024 to $30.5 billion (about 42 trillion won) by 2030.
LG CNS is accelerating its entry into the Southeast Asian market by pushing forward with the data center business in Vietnam, following its recent receipt of a project to build AI data center infrastructure in Indonesia, the first among domestic corporations.
In Vietnam, there are plans to strengthen collaboration in smart engineering fields, including smart factories and logistics, with VNPT. The Vietnamese government has prioritized digital transformation and the development of the digital economy as a core national task, promoting the automation of manufacturing plants and the establishment of smart logistics infrastructure.
Hyeon Sin-Kyun, CEO of LG CNS, said, 'This agreement will serve as a turning point to further accelerate Vietnam's digital transformation beyond the data center business.'