Da Nang Centralized IT Park Development, a subsidiary of Trung Nam Group, signed an investment deal worth US$100 million with Singapore’s Infracrowd Capital this week to develop the first-ever tier-3 plus standard data center in the central Vietnamese city.

The data center is expected to facilitate the growing demand for information technology (IT) in Southeast Asian countries, particularly in Vietnam, according to Nguyen Anh Huy, director of Da Nang Centralized IT Park Development JSC.

The project is designed to align with the city’s strategic goal of transforming into the nation’s key IT hub in order to attract foreign investors in the near future.

Upon completion, the data center will provide server, cloud computing, and IT services that meet international and security standards.

Nguyen Quang Thanh, director of the Da Nang Department of Information and Communications, announced during the signing ceremony on Tuesday that the center’s manufacturing activities will include integrated circuit (IC) design, software and digital content production.

Thanh also noted that the data center will allow the region to develop in the fields of artificial dintelligence (AI) and virtual reality (VR) due to their need for massive amounts of storage, processing, and computing infrastructure.

Da Nang's IT Park, of which the data center is a component, has invested in five large-scale factories to manufacture and assemble high-tech electronic equipment.

The park is slated to be put into operation in the first quarter of 2022.

As part of the run-up to the center’s opening, Trung Nam Electronic Manufacturing Services has signed a strategic cooperation contract with Xelex JSC to produce 100,000 tablets for the 'Signals and Computers for Children' program, a nationwide initiative launched by the Ministry of Information and Communications to provide students with devices for online learning.

Trung Nam Group said that factories in the IT Park will boast a combined 20 production lines for automatic gluing machines that will create jobs for 1,000 to 2,000 Vietnamese employees.

In order to satisfy future orders, the factories have begun recruiting and training new workers.

Development of the IT Park project has been split into two phases.

The first phase covers an area of 131ha and boasts $47 million in total investment while the second stage spans 210ha and is expected to cost $74 million, said Da Nang Today newspaper.

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