LG CNS, a Korean information technology solutions provider under LG Group, said Tuesday it would construct a hyperscale artificial intelligence data center in Vietnam.
The announcement follows about a week after the company became Korea’s first firm to secure an overseas AI data center construction deal. The data center planned for Jakarta, Indonesia, is worth around 100 billion won ($72 million).
The IT solutions provider said it signed a memorandum of understanding with Vietnam Posts and Telecommunications Group (VNPT) and Korea Investment Real Asset Management at the Korea-Vietnam Business Forum held in Seoul on Tuesday.
“The latest agreement marks an expansion of our data center business and a turning point to accelerate Vietnam’s digital transformation,” LG CNS CEO Hyun Shin-gyoon said.
VNPT, Vietnam’s largest state-owned telecom operator, is a leading player in the country’s digital transformation drive, offering services in telecommunications, data centers, cloud computing and smart city solutions, according to LG CNS.
Under the agreement, the three parties will form a dedicated working group comprising technical experts to jointly develop a hyperscale AI data center in Vietnam.
The latest collaboration will span the full range of AI infrastructure, from facility construction and hardware such as servers and storage to network systems, including communications and connectivity.
The Southeast Asia data center market is experiencing rapid growth, fueled by the expansion of AI- and cloud-based digital transformation and increased government investment in digital infrastructure.
According to US market research firm 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, posting an annual average growth rate of around 14 percent.
In addition to the data center project, LG CNS and VNPT plan to explore cooperation in smart engineering, including smart factories and logistics.
The Vietnamese government has designated digital transformation and the digital economy as national priorities, pushing for initiatives such as manufacturing automation and smart logistics infrastructure.
yeeun@heraldcorp.com
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