Singapore's Sembcorp to build $480M data center on 4.5 ha in HCMC

Singapore's Sembcorp is set to construct a $480 million data center complex spanning 4.5 hectares within Ho Chi Minh City's Saigon Hi-Tech Park. This ambitious project aims to cater to Vietnam's burgeoning demand for digital services, including AI, cloud computing, and big data processing, driven by the nation's rapid digitalization. The development will be undertaken by Starmason JSC, a venture where Singapore's Sembcorp Development, a wholly owned subsidiary of Sembcorp Industries, holds a 49% stake. Vietnamese partner BB Holdings holds the remaining shares. Starmason JSC was established in November 2025 specifically for this data center project. Sembcorp has a three-decade presence in Vietnam, primarily through its Vietnam Singapore Industrial Park network, marking this as its inaugural data center venture in the country. The facility will be situated on lot T9, fronting La Xuan Oai Street and roads D4 and D7 in Tang Nhon Phu Ward. The complex is designed for an initial 60 MW IT load, with provisions for expansion to 90 MW. It will be built in phases to Uptime Institute Tier III standards, with the ultimate goal of achieving Tier IV, the highest classification. Ho Chi Minh City has granted Starmason significant incentives, including exemption from land use rights auctions and bidding processes for investor selection, aligning with the new 2024 Land Law. Starmason will make a single lump-sum payment for land rent, covering the full lease, and will be exempt from rent for the project's duration, provided it adheres to specified conditions. The company is mandated to use the land solely for its stated purpose, meet certificate terms, and secure funding and construction timelines. This data center initiative is part of Ho Chi Minh City's broader strategy to attract high-tech industries. In late April, the city issued investment certificates for four hi-tech projects totaling $1.23 billion, including the $508 million Evolution DC VN HCMC facility backed by a Singaporean consortium, which will have a 52 MW IT load. Vietnam's one-party system continues to prioritize economic growth, with a strong focus on manufacturing and the digital economy. While navigating complex relations with China, the country actively seeks foreign direct investment (FDI). Large-scale infrastructure investments like Sembcorp's are expected to significantly enhance Vietnam's digital infrastructure and solidify its position in global supply chains.