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Singapore's STT GDC Exits Vietnam Data Center Project; VNG Buys Back Stake for Office Campus

By: IDCNOVARegion: Southeast Asia
VNG Group JSC, one of Vietnam's leading technology firms, is set to reacquire full control of VTH Software Development JSC after its Singapore-based partner, STT GDC, withdrew from a planned data center project in Ho Chi Minh City. The buyback, valued at VND480 billion ($18.3 million), reverses a partnership formed just over two years ago and signals a strategic pivot for both companies amid shifting priorities in Southeast Asia's competitive data center market.

The transaction, disclosed in a stock market filing last week, involves VNG purchasing 33.4 million ordinary shares representing 65 percent of VTH's charter capital from STT GDC. The deal is expected to close in the third or fourth quarter of 2026, subject to governmental and regulatory approvals, including merger control clearance. Upon completion, VNG will hold approximately 99.99 percent of VTH's charter capital and voting rights, making the company a direct subsidiary once again.

The original partnership dates back to May 2024, when two Singapore entities—STT Vietnam DC Pte. Ltd. and STT Vietnam SPV Pte. Ltd., jointly referred to as STT GDC—invested in VTH by subscribing to newly issued shares. That investment gave STT GDC a 65 percent stake and reduced VNG's ownership from 100 percent to 35 percent. The partners had intended to develop a data center on a plot of approximately 2.5 hectares in the Tan Thuan Export Processing Zone, held by VTH under a land-use rights certificate expiring on September 23, 2041.

According to the disclosure, STT GDC concluded that the project no longer aligned with its investment strategy and commercial objectives. The remaining land-use term was not considered optimal for the long-term investment and operation of a hyperscale data center, a factor that likely weighed heavily on the decision given the extended payback periods typical of large-scale digital infrastructure projects.

For VNG, the buyback aligns with a broader corporate strategy focused on long-term asset utilization. The company said the site can now serve its future plans, including the expansion of its office campus, employee sports and recreational facilities, an e-sports center, and other business initiatives. This marks a notable shift from the original data center ambition, reflecting VNG's prioritization of operational infrastructure for its core technology and entertainment businesses over capital-intensive digital real estate ventures.

The exit also underscores a broader trend in the regional data center landscape, where developers are increasingly reassessing project viability based on land tenure, power availability, and market demand. As hyperscale requirements tighten, partnerships that once seemed mutually beneficial may be unwound when strategic fit deteriorates. For STT GDC, the move allows the company to redirect resources toward markets or projects with more favorable long-term fundamentals, while VNG gains full control of a prime urban asset in one of Vietnam's most dynamic commercial zones.