Geopolitical tensions have triggered an energy crisis, making data center site selection more cautious. (Photo: Viettel)
Energy prices and access to electricity are increasingly becoming key considerations for companies when selecting data center locations. Vietnam’s recent adjustment to the way electricity tariffs for data centers are calculated has triggered pushback from operators, who worry it could weaken the country’s attractiveness to foreign investment.
At the same time, rising global energy prices are adding further pressure. Power intensive AI data centers are unlikely to avoid the impact, which could even threaten up to USD 800 billion in planned investment across the Asia Pacific region.
Le Minh Hieu, vice chairman of the Vietnam Data Center Club, told RECCESSARY that in Vietnam, the pass-through may be slower because power prices are regulated. The bigger concern is not only price, but also power reliability.
Unlock the full article to explore three key takeaways:
- Data center investment in Asia Pacific is projected to reach USD 800 billion by 2030, but rising energy prices driven by US-Iran tensions threaten project viability.
- Vietnam’s new regulation in December 2025 shifts data center electricity pricing from industrial to commercial rates, with operators estimating costs could rise by around 50%.
- Experts say long-term strategies are shifting from low-cost land to reliable power access, making energy integrated industrial parks increasingly attractive.
