LG CNS planning construction of an artificial intelligence data center in Vietnam
South Korean information technology solutions provider, LG CNS, has made a significant stride in expanding its data center business with the announcement of plans to construct a hyperscale artificial intelligence (AI) data center in Vietnam. This marks the first time a Korean firm has secured an overseas AI data center construction deal.
The collaboration between LG CNS and Vietnam's largest state-owned telecom operator, VNPT, will cover the full range of AI infrastructure, including facility construction, hardware, network systems, and communications. The project, worth around 100 billion won ($72 million), is set to host over 100,000 servers across 11 floors, with an initial power capacity of 30 megawatts, expandable up to 220 megawatts.
The agreement is a turning point that accelerates Vietnam's digital transformation, according to LG CNS CEO Hyun Shin-gyoon. VNPT, a leading player in the country's digital transformation drive, offers services in telecommunications, data centers, cloud computing, and smart city solutions.
The Southeast Asia data center market is experiencing rapid growth, driven by AI- and cloud-based digital transformation and increased government investment in digital infrastructure. According to Arizton Advisory & Intelligence, the Southeast Asia data center market is projected to grow from $13.7 billion in 2024 to $30.5 billion in 2030, with an annual average growth rate of around 14%.
In addition to the data center project, LG CNS and VNPT plan to explore cooperation in smart engineering, including smart factories and logistics. The partnership was formalised with the signing of a memorandum of understanding at the Korea-Vietnam Business Forum held in Seoul on Tuesday.
The expansion of AI data centers in Southeast Asia aligns with global trends where hyperscale AI capacity and associated infrastructure investments are expected to multiply substantially through 2030. This surge highlights the anticipated strong demand for GPU and AI compute power that LG CNS aims to capitalize on in the region.
| Aspect | Details | |-----------------------|-----------------------------------------------------------------| | Size | 100,000+ servers; 11 floors; initial 30 MW, expandable to 220 MW | | Partners | LG CNS and internal LG units; broader partner specifics not fully revealed | | Market Context | Part of a $7 trillion global AI infrastructure boom (2025–2034) | | Southeast Asia Growth | Accelerated digital expansion; complementing hyperscale AI centers in Thailand, Singapore, etc. |
This positions LG CNS at the forefront of Southeast Asia’s AI data center evolution, leveraging strategic scale and regional demand growth.
[1] Brookfield forecasts an increase from 7 GW in 2024 to 15 GW by the end of 2025, projecting a $7 trillion investment in AI infrastructure globally from 2025 to 2034
[2] LG CNS's Vietnam data center represents a key step in accelerating the region's digital transformation
[3] The expansion of AI data centers in Southeast Asia is consistent with global trends where hyperscale AI capacity and associated infrastructure investments are expected to multiply substantially through 2030
[4] The Vietnamese government has designated digital transformation and the digital economy as national priorities, and is pushing for initiatives such as manufacturing automation and smart logistics infrastructure
