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title: STT GDC teams with VNG to enter Vietnam’s data centre market - Developing Telecoms
description: ST Telemedia Global Data Centres (STT GDC) announced on Wednesday it is expanding into Vietnam via a joint venture with Vietnamese tech firm VNG Corporation to build and operate data centres in Ho Chi Minh City.
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date: 2024-05-16T03:00:04Z
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ST Telemedia Global Data Centres (STT GDC) announced on Wednesday it is expanding into Vietnam via a joint venture with Vietnamese tech firm VNG Corporation to build and operate data centres in Ho Chi Minh City.

The JV partnership includes VNG’s existing data centre in in the Tan Thuan area, which has been rebranded as STT VNG Ho Chi Minh City 1. The two companies will build a second facility, STT VNG Ho Chi Minh City 2, 1.5 kilometres away within the same Tan Thuan cluster.

Billed as Ho Chi Minh City's first carrier-neutral connectivity hub when it was opened by VNG at the end of 2022, STT VNG Ho Chi Minh City 1 is an Tier-3 rated facility offering a total IT load capacity of 9.6 megawatts. It provides network coverage from major local telecoms operators and services including cloud access to providers, local leased lines and disaster recovery workspace. Customers can also establish direct peering connections to VNGGames and VNG Cloud.

The new STT VNG Ho Chi Minh City 2 will be connected to the original data centre, and is planned to offer a development potential of up to 60 megawatts of IT load capacity.

STT GDC says the new data centre facility is expected to be operational in the first half of 2026.

Lionel Yeo, CEO for Southeast Asia at STT GDC, said the JV will leverage VNG’s deep local market knowledge, carrier neutrality and extensive customer and partner network to capitalise on Vietnam’s growing ambitions to become a digital powerhouse in Southeast Asia.

“Vietnam is at the cusp of significant growth in the data centre market, and we firmly believe that the combined strengths of both partners will enable us to serve the local market with agility and pace,” he said in a statement.

VNG Founder and CEO Le Hong Minh said the JV would set new service standards worldwide for Vietnam's data centre industry as well as introduce VNG’s products and services to international markets.

“Together, we are advancing the AI Cloud movement to support both regional and local businesses, in line with key trends in the digital economy,” he said.

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