Abu Dhabi-based AI holding company G42 has signed an agreement with two Vietnamese companies to build three data centers in Vietnam.

G42 will collaborate with FPT Corporation, one of Vietnam’s largest IT and telco firms, and the conglomerate Viet Thai Group under the terms of an undisclosed framework agreement.

Currently, there is no information about the proposed data centers’ size, location, and capacity.

Although G42 and FPT Corporation have prior experience with the data center industry, it is unclear whether the Viet Thai Group does. The company is known primarily as the owner of Highlands Coffee – a popular coffee shop chain in Vietnam – and the operator of other consumer and retail businesses.

Reports about a potential data center development in Vietnam involving all three companies surfaced last July.

At the time, the consortium also included Vietnamese venture capital firm VinaCapital Investment Fund, and the group were reportedly pursuing $2 billion worth of data center developments.

The current partnership is backed up by $1bn, which is half that amount.

Vietnam’s government has largely succeeded in its attempt to make Vietnam more amenable to foreign investors. In July 2024, the country relaxed its laws regarding foreign ownership by removing the 49 percent foreign ownership cap.

This has brought more investment into the country’s data center and telco industry.

Just last year, South Korean conglomerates including KT, SK, LG, and Samsung signed agreements with Vietnamese companies to establish data centers in the country.