Vietnamese telecoms firm VNG is set to buy out ST Telemedia Global Data Centres’ (STT GDC) share of a planned data center project in Ho Chi Minh City.

As reported by Vietnam.vn and other local press, VNG is set to buy back STT GDC's 65 percent stake in VTH Software Development for VND480 billion ($18.3 million).

VNG said it will take full control of VTH, which owns a land plot in Ho Chi Minh City designated for a data center project.

The two companies first partnered on the project in 2024, with plans to develop a 25,465 sqm (274,100 sq ft), 60MW facility known as STT VNG Ho Chi Minh City 2. Originally due live in H1 2026, STT GDC still lists the planned facility on its website at time of writing.

An STT GDC spokesperson told DCD: "Following a review, STT GDC determined that the site did not meet its investment and commercial requirements and agreed to sell its shares in VTH to VNG, subject to the relevant approvals and completion conditions.

"The transaction relates only to VTH and the associated land parcel and is a site-specific portfolio decision. It does not involve STT GDC’s existing data centre operations in Vietnam and has no impact on its current services or customer commitments.

"STT GDC remains committed to growing its business in Vietnam. This site-specific decision does not change STT GDC’s commitment to pursuing growth opportunities in Vietnam."

The 2.5-hectare site is located in the Tan Thuan Export Processing Zone, held by VTH under a long-term lease expiring in September 2041.

A stock exchange filing by VNG said STT GDC concluded that the project no longer aligned with its investment strategy and commercial objectives. The remaining land-use term was not optimal for the long-term investment and operation of a hyperscale data center.

VNG, however, has concluded the site can still serve a purpose, possibly hosting offices, employee sports-recreational facilities, an e-sports center, and other business initiatives.

The two companies still operate the 9.6MW STT VNG Ho Chi Minh City 1 (previously referred to as VNG Data Center) in the Tan Thuan area of Ho Chi Minh City.