LG CNS, a Korean IT solutions provider under LG Group, will build a hyperscale Vietnam AI data center. The company signed a memorandum of understanding with Vietnam Posts and Telecommunications Group (VNPT) and Korea Investment Real Asset Management. They announced the agreement during the Korea-Vietnam Business Forum in Seoul.
This Vietnam AI data center project follows LG CNS securing its first overseas AI data center deal in Indonesia. That facility, planned for Jakarta, is valued at about 100 billion won. Now, with the Vietnam project, LG CNS aims to strengthen its position in global AI infrastructure and accelerate growth.
LG CNS CEO Hyun Shin-gyoon said the deal expands the company’s data center business. He also noted that it marks a turning point in Vietnam’s digital transformation. VNPT, Vietnam’s largest state-owned telecom operator, drives the country’s digital push with services in telecoms, data centers, and cloud computing.
The partners will create a dedicated working group with technical experts. Together, they will design, build, and equip the Vietnam AI data center. They will also install servers, storage, and network systems, ensuring strong connectivity and secure infrastructure. Additionally, they will integrate communication solutions to support advanced AI operations.
The Southeast Asia data center market is growing rapidly. AI and cloud-based services, along with rising government investment, fuel this growth. According to Arizton Advisory & Intelligence, the market could grow from $13.7 billion to $30.5 billion by 2030. This represents an annual growth rate of about 14 percent.
LG CNS and VNPT will also explore cooperation in smart engineering. They plan projects in smart factories, logistics automation, and other advanced infrastructure. These efforts align with Vietnam’s national strategy to prioritize digital transformation and expand the digital economy.
Vietnam’s government is pushing for automation in manufacturing and improvements in logistics. By joining forces, LG CNS and VNPT can deliver technology that supports these priorities. Furthermore, the project could attract more Korean companies to Vietnam’s growing technology sector.
