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
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
