How data center ownership rules are changing

Unlike Vietnam, China's primary goal of opening up restrictions is to attract investment that will level up its competitiveness, a common aim of its economic reforms in recent years.

“The policy move is a game-changer,” says Ben Teh, Senior Director, Capital Markets, East China, JLL. “While many foreign operators are already active in China through strategic alliances, the relaxed regulations signal a more open market that inspires confidence among investors, potentially encouraging new entrants and facilitating market exits.”

The regulatory change aligns with the country’s broader ambitions to become a global artificial intelligence (AI) leader capable of attracting capital, talent, and ultimately increasing its market share.

Currently, both China and Vietnam still face challenges in establishing themselves as major data center hubs.

China grapples with geopolitical factors that impact supply chains, including access to essential components, equipment, and high-performance graphics processing units, Teh says.

Meanwhile, Vietnam’s local operators can benefit from the deep understanding, strategies, and expertise of global and regional data center players.