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Google Reportedly Weighs Large Data Center in Vietnam

FILE PHOTO: The logo for Google is seen at the Google Store Chelsea in Manhattan, New York City, US, November 17, 2021. REUTERS/Andrew Kelly/File Photo
FILE PHOTO: The logo for Google is seen at the Google Store Chelsea in Manhattan, New York City, US, November 17, 2021. REUTERS/Andrew Kelly/File Photo
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Google Reportedly Weighs Large Data Center in Vietnam

FILE PHOTO: The logo for Google is seen at the Google Store Chelsea in Manhattan, New York City, US, November 17, 2021. REUTERS/Andrew Kelly/File Photo
FILE PHOTO: The logo for Google is seen at the Google Store Chelsea in Manhattan, New York City, US, November 17, 2021. REUTERS/Andrew Kelly/File Photo

Alphabet's Google is considering building a large data center in Vietnam, a person briefed on the plans said, in what would be the first such investment by a big US technology company in the Southeast Asian nation.
Google is weighing setting up a "hyperscale" data center close to Ho Chi Minh City, Vietnam's southern economic hub, the source said, declining to be named because the information is not public.
The investment, the size of which the source did not specify, would be a shot in the arm for Vietnam which has so far failed to attract major overseas capital in data centers due to its patchy infrastructure, with large tech companies preferring to house their centers in rival nations in the region.
According to Reuters, it was not clear how quickly Google will reach a decision on an investment but the source said internal talks are on and the data center could be ready in 2027.
A spokesperson for Google declined to comment about the data center plan.
Hyperscale centers are the largest in the industry, with power consumption usually similar to that of a big city.
A hyperscale data center with power consumption capacity of 50 megawatts (MW) could cost between $300 million and $650 million, according to estimates based on data published by real estate consultant Jones Lang LaSalle in a report this year on data centers in Vietnam.
Google's move was motivated by the large number of its domestic and foreign cloud services clients in Vietnam and the country's expanding digital economy, the source said, noting the Southeast Asian nation was one of the fastest-growing markets for YouTube, Google's popular online video sharing platform.
Currently the top data center operators in Vietnam, based on computing space, are industrial investment firm IDC Becamex and telecommunications company VNPT, both Vietnamese state-owned enterprises, according to an internal market report by an industrial park in Vietnam seen by Reuters.
The Nikkei reported in May that Chinese e-commerce company Alibaba was considering building a data center in Vietnam. Alibaba did not reply to a request for comment.

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US May Target Samsung, Hynix, TSMC Operations in China

A man walks past the logo of Samsung Electronics displayed outside the company's Seocho building in Seoul on April 30, 2025. (Photo by Jung Yeon-je / AFP)
A man walks past the logo of Samsung Electronics displayed outside the company's Seocho building in Seoul on April 30, 2025. (Photo by Jung Yeon-je / AFP)
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US May Target Samsung, Hynix, TSMC Operations in China

A man walks past the logo of Samsung Electronics displayed outside the company's Seocho building in Seoul on April 30, 2025. (Photo by Jung Yeon-je / AFP)
A man walks past the logo of Samsung Electronics displayed outside the company's Seocho building in Seoul on April 30, 2025. (Photo by Jung Yeon-je / AFP)

The US Department of Commerce is considering revoking authorizations granted in recent years to global chipmakers Samsung, SK Hynix and TSMC, making it more difficult for them to receive US goods and technology at their plants in China, according to people familiar with the matter.

The chances of the United States withdrawing the authorizations are unclear. But with such a move, it would be harder for foreign chipmakers to operate in China, where they produce semiconductors used in a wide range of industries, Reuters said.

A White House official said the United States was "just laying the groundwork" in case the truce reached between the two countries fell apart. But the official expressed confidence that the trade agreement would go forward and that rare earths would flow from China, as agreed.

"There is currently no intention of deploying this tactic," the official said. "It's another tool we want in our toolbox in case either this agreement falls through or any other catalyst throws a wrench in bilateral relations."

Shares of US chip equipment makers that supply plants in China fell when the Wall Street Journal first reported the news earlier on Friday. KLA Corp dropped 2.4%, Lam Research fell 1.9% and Applied Materials sank 2%. Shares of Micron, a major competitor to Samsung and SK Hynix in the memory chip sector, rose 1.5%.

A TSMC spokesman declined comment. Samsung and Hynix did not immediately respond to requests for comment. Lam Research, KLA and Applied Materials did not immediately respond, either.

In October 2022, after the United States placed sweeping restrictions on US chipmaking equipment to China, it gave foreign manufacturers like Samsung and Hynix letters authorizing them to receive goods.

In 2023 and 2024, the companies received what is known as Validated End User status in order to continue the trade.

A company with VEU status is able to receive designated goods from a US company without the supplier obtaining multiple export licenses to ship to them. VEU status enables entities to receive US-controlled products and technologies "more easily, quickly and reliably," as the Commerce Department website puts it.

The VEU authorizations come with conditions, a person familiar with the matter said, including prohibitions on certain equipment and reporting requirements.

“Chipmakers will still be able to operate in China," a Commerce Department spokesperson said in a statement when asked about the possible revocations. "The new enforcement mechanisms on chips mirror licensing requirements that apply to other semiconductor companies that export to China and ensure the United States has an equal and reciprocal process.”

Industry sources said that if it became more difficult for US semiconductor equipment companies to ship to foreign multinationals, it would only help domestic Chinese competitors.

"It’s a gift," one said.