LG CNS Promotes Vietnam AI Data Center Project

[Financial News] AX (Artificial Intelligence Transformation) specialized company LG CNS is expanding its AI data center business to Vietnam following Indonesia, aiming to expand its global market.
LG CNS announced on the 12th that it signed a 'Memorandum of Understanding (MOU) for Vietnam Data Center Development Cooperation' with Vietnam's largest state-owned telecommunications company, Vietnam Posts and Telecommunications Group (VNPT), and Korea Investment Real Asset Management at the 'Korea-Vietnam Business Forum' held at Lotte Hotel Seoul.
The 'Korea-Vietnam Business Forum' is an event held to promote investment cooperation relations between the two countries and explore market entry opportunities, attended by Vietnam's To Lam Secretary-General and others. VNPT is leading Vietnam's digital transformation (DX) business, including △telecommunication services △data centers △cloud △smart cities, and has selected LG CNS, which is actively conducting DX business based on cloud and AI technology in Korea and Vietnam, as a strategic partner to accelerate the business.
Through this MOU, the three companies will collaborate on developing a hyperscale AI data center in Vietnam. For this, each company will form a separate working group consisting of experts to conduct comprehensive cooperation for AI infrastructure construction, from data center facilities to hardware equipment such as servers and storage, as well as network areas such as communication and lines.
The data center market in Southeast Asia, including Vietnam, is rapidly growing due to the spread of AI and cloud-based DX and the government's expansion of digital infrastructure investment. According to the U.S. market research firm 'Arizton,' the Southeast Asian data center market size is expected to grow from $13.7 billion (about 19 trillion won) in 2024 to $30.5 billion (about 42 trillion won) in 2030, with an average annual growth rate of about 14%.
LG CNS plans to further strengthen its leadership in the Southeast Asian market by promoting the data center business in Vietnam following the recent contract to build AI data center infrastructure in Indonesia, the first among domestic companies. LG CNS has successfully carried out various DBO projects domestically and internationally for over 30 years and is recognized as the operator with the most data centers in Korea, having built and operated a total of 9 data centers, including its own centers and operation consignment centers.
LG CNS also plans to broadly pursue cooperation with VNPT in smart engineering fields such as smart factories and logistics. The Vietnamese government has selected digital transformation and digital economy development as key national tasks and is promoting the automation of manufacturing plants and the construction of smart logistics infrastructure. The two companies plan to strengthen cooperation by discovering smart engineering business models optimized for the local Vietnamese market based on the technological capabilities and references accumulated by each company.
LG CNS CEO Hyun Shin-gyun stated, "This agreement will be a turning point to further accelerate Vietnam's digital transformation beyond the data center business," and added, "We will continue to become a 'global AX partner' leading customers' business innovation based on excellent technologies such as AI and cloud."   

jiany@fnnews.com Yeon Ji-an Reporter