LG CNS partners with Vietnam telecom giant to build hyperscale AI data center

LG CNS has partnered with Vietnam Posts and Telecommunications Group (VNPT) and Korea Investment Real Asset Management to develop a hyperscale artificial intelligence data center in Vietnam. The collaboration represents a significant expansion into Southeast Asia’s rapidly growing data center market, projected to reach $30.5 billion by 2030, while supporting Vietnam’s national digital transformation priorities.

What you should know: The partnership will establish a comprehensive AI infrastructure project spanning facility construction, hardware deployment, and network systems.
• The three parties signed a Memorandum of Understanding at the Korea-Vietnam Business Forum in Seoul to advance the AI facility construction.
• A dedicated technical working group will jointly develop the hyperscale AI data center, covering everything from servers and storage to communications and connectivity systems.
• Beyond the data center, LG CNS and VNPT plan to collaborate on smart engineering areas including smart factories and logistics.

Who’s involved: VNPT brings significant infrastructure expertise as Vietnam’s largest state-owned telecom operator.
• Vietnam Posts and Telecommunications Group plays a central role in the country’s digital transformation, offering telecom, data center, cloud computing, and smart city services.
• Korea Investment Real Asset Management adds financial backing to the technical partnership between LG CNS and VNPT.

The bigger picture: This Vietnam project follows LG CNS’s broader regional expansion strategy, building on their recent Indonesian data center announcement.
• The company recently announced plans for a KRW100 billion ($72 million) AI data center in Jakarta through joint venture LG Sinarmas Technology Solutions.
• Set for completion by end of 2026, the Jakarta facility will span 11 stories across 46,281 square meters, accommodating over 100,000 servers with power capacity scaling from 30 MW to 220 MW.
• The Indonesian project will be the largest AI data center in the country and the first overseas AI-focused facility established by a Korean company.

What they’re saying: LG CNS CEO Hyun Shin-gyoon described the Vietnam deal as strategic for both expansion and regional development.
• He characterized the agreement as “an expansion of their data center operations and a key step to accelerate Vietnam’s digital transformation.”

Technical approach: LG CNS is adopting an integrated “One LG” strategy that leverages technologies across LG Group affiliates.
• The approach incorporates cooling systems from LG Electronics and battery platforms from LG Energy Solution.
• Facilities feature GPU-specialized infrastructure with hybrid cooling systems to manage high-performance GPU heat and environmentally friendly HVAC systems for autonomous temperature and humidity regulation.
• Data centers are designed with network neutrality, allowing tenants to freely choose their telecom providers.