CONTACT US
Share: Share on Facebook Share on Twitter Share on LinkedIn I recommend visiting cushmanwakefield.com to read:%0A%0A {0} %0A%0A {1}

Data Centres: Vietnam’s yield on cost second highest in Asia Pacific, Cushman & Wakefield finds

Xuan Pham • 11/07/2025

Vietnam is rapidly emerging as a strategic destination in the Asia-Pacific data center investment landscape, with a yield-on-cost second only to Singapore, according to Cushman & Wakefield’s latest report.

The Asia Pacific Data Center Investment Landscape report found Yield on Cost (YoC) on data centre investments in Vietnam to be in the range of 17.5% to 18.8%, behind Singapore’s 21% to 23%. This positions Vietnam as one of the most attractive emerging markets, driven by surging demand, competitive development costs, and proactive government support.

Yield on Cost and per MW Development Cost Including Land, 2025

Yield on Cost and per MW Development Cost Including Land, 2025 EN.png

Source: Cushman & Wakefield APAC DCG

The average development cost—including construction and land costs—per megawatt (MW) of data center capacity in Vietnam is approximately USD 7.1 million. This is significantly below the regional average of USD 10.1 million/MW and nearly half the cost of development in Japan, which is the region’s the most expensive market at USD 16.1 million/MW.

By 2030, the total capital expenditure (CapEx) requirement for planned data center projects in Vietnam is estimated at USD 755 million. While this figure is modest compared to major markets such as Japan (USD 47 billion), Australia (USD 21 billion), or Malaysia and India (USD 20 billion each), it underscores the market’s early-stage growth and high return potential. Vietnam’s current capitalization rate ranges from 7% to 8%, well above the regional average of 5.8%, offering an attractive risk premium for forward-looking investors.

Vietnam’s infrastructure shortfall is part of a broader regional trend, highlighting robust demand amid constrained supply. The Asia-Pacific region averages over 350,000 people per MW of colocation capacity—several times higher than the U.S.. In Vietnam, this figure exceeds 1.77 million people per MW, among the highest in the region. Even if all under-construction and planned projects are completed by 2030, the country would still face a significant shortfall, with a projected density of 692,563 people per MW.

Vietnam’s macroeconomic fundamentals further support the sector’s growth. Although the country has yet to reach a USD 1 trillion GDP like some regional peers, it is among the fastest-growing economies with strong breakout potential. Cushman & Wakefield’s analysis shows that markets with GDPs under USD 1 trillion—including Vietnam, the Philippines, Thailand, Taiwan, and New Zealand—account for 7% of regional GDP but only 5% of total data center capacity, indicating substantial headroom for expansion.

A key factor enhancing Vietnam’s investment appeal is its liberalized regulatory environment. Report author and Head of Insights and Analysis for Cushman & Wakefield’s Asia Pacific Data Centre Group, Pritesh Swamy, added:

“Vietnam’s recently introduced policy change allowing foreign investors to acquire land, and to own and operate data centres without a local partner, has demonstrated the Government’s commitment to boosting digital infrastructure across the country. Data centres have been classified as “high-priority technology” for development and investment, and we expect to see further interest from international investors in the months to come.”

Cushman & Wakefield’s latest report provides a comprehensive assessment of the Asia Pacific data centre investment landscape, with a focus on fourteen key markets. It evaluates critical financial indicators such as capitalisation rates (cap rates), yield on cost (YoC), development costs, and total return profiles, offering insights into both stabilised assets and development opportunities.

Download the Asia Pacific Data Centre Investment Landscape report here


About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in nearly 400 offices and 60 countries. In 2024, the firm reported revenue of $9.4 billion across its core service lines of Services, Leasing, Capital markets, and Valuation and other. Built around the belief that Better never settles, the firm receives numerous industry and business accolades for its award-winning culture. For additional information, visit www.cushmanwakefield.com.

Media Contact

Xuan Pham
Xuan Pham

Senior Director, Head of BDS, Vietnam • Ho Chi Minh City

Recent Press Releases

Breaking into Southeast Asia 2024 forum
Cushman & Wakefield facilitates Southeast Asia showcase to highlight the region’s benefits to manufacturers

Cushman & Wakefield, a leading global real estate services firm, hosted the Breaking into Southeast Asia, New Opportunities for China’s Manufacturing & Logistics Industry forum, held in Shanghai and Shenzhen on October 21 and October 24.

07/11/2024

EMEA_ESG_AdobeStock_855584119.jpeg
ESG Commitment - Shaping a Sustainable Future

As the effects of climate change continue to escalate, investors, regulators, and real estate users in Vietnam and around the world are increasingly focused on sustainable asset types that minimize environmental impact.

30/09/2024

Mid-Autumn_card.jpg
Bright and Full: a Mid-autumn Festival at Maison Chance Dak Nong

In the spirit of this special day, the Cushman & Wakefield team decided to revisit Maison Chance, the “lucky home” for the unfortunate. 

17/09/2024

CAN'T FIND WHAT YOU'RE LOOKING FOR?

Get in touch with one of our professionals.
With your permission we and our partners would like to use cookies in order to access and record information and process personal data, such as unique identifiers and standard information sent by a device to ensure our website performs as expected, to develop and improve our products, and for advertising and insight purposes.

Alternatively click on More Options and select your preferences before providing or refusing consent. Some processing of your personal data may not require your consent, but you have a right to object to such processing.

You can change your preferences at any time by returning to this site or clicking on Privacy & Cookies.
MORE OPTIONS
AGREE AND CLOSE
These cookies ensure that our website performs as expected,for example website traffic load is balanced across our servers to prevent our website from crashing during particularly high usage.
These cookies allow our website to remember choices you make (such as your user name, language or the region you are in) and provide enhanced features. These cookies do not gather any information about you that could be used for advertising or remember where you have been on the internet.
These cookies allow us to work with our marketing partners to understand which ads or links you have clicked on before arriving on our website or to help us make our advertising more relevant to you.
Agree All
Reject All
SAVE SETTINGS