China has officially taken the lead in the global nuclear power landscape, boasting a total of 102 nuclear reactors that are either operational, under construction, or approved for construction, with an impressive combined installed capacity of 113 million kW. This significant milestone was reported by the China Nuclear Energy Association (CNEA) in their China Nuclear Energy Development Report 2025 released on April 27, 2025. For the first time, China has surpassed all other nations in terms of total nuclear power scale.
However, it is important to note that while China leads in overall capacity, the United States still holds the title for the most operational reactors, with 94, compared to China’s 58. In terms of nuclear power generation, China achieved an accumulated output of 444.7 billion kWh in 2024, which accounted for 4.72% of the country's total power generation. This impressive output has contributed to a reduction in carbon dioxide emissions by approximately 334 million tons annually.
As of the end of 2024, China had 28 reactors under construction, maintaining its position as the world leader in installed capacity of reactors under construction for 18 consecutive years. According to the CNEA report, China's operational reactor installed capacity is expected to surpass that of the United States before 2030.
In a significant achievement, China has also reached 100% localization of key nuclear power equipment in 2024. The number of domestically produced main equipment delivered in that year reached 114 sets, doubling the number from 2023. Cao Shudong, the Executive Vice President of CNEA, highlighted that China's independent research and development efforts continue to yield new breakthroughs. The first unit of the Guohe One project, a significant national science and technology initiative, has been completed and is now operational. Additionally, the Linglong One project is on track to be completed and operational by 2026.
The report also emphasized China's continuous progress in international cooperation, particularly in enhancing exchanges and coordination with the International Atomic Energy Agency (IAEA). China has opened 12 research facilities and experimental platforms to the world and is deepening its nuclear power cooperation with countries such as Russia and France.
The global nuclear power sector is entering a new phase of development, driven by factors such as climate change, energy security, and the increasing demand for electricity due to the proliferation of data centers. Dong Baotong, head of the National Nuclear Safety Administration of China, stated that the country’s nuclear power sector has reached a peak in large-scale construction and must ensure the safe operation of reactors.
Since 2011, China has been implementing a long-term strategy for nuclear power development. According to the China Energy Research Institute under the National Development and Reform Commission (NDRC), to achieve carbon neutrality, the proportion of nuclear power in China's energy structure must increase to 28% by 2050. This is a significant increase from just 5% in 2022, indicating that nuclear capacity must reach 554 GW by mid-century.
Meanwhile, in another part of the world, Viettel has recently commenced the construction of a super-large data center in the Tan Phu Trung Industrial Park located in Cu Chi district, Ho Chi Minh City. This ambitious project spans nearly 4 hectares and boasts a total designed capacity of up to 140 MW, with approximately 10,000 racks. The average capacity is set to reach 10 kW per rack, which is 2.5 times the average in Vietnam, while the maximum capacity can peak at 60 kW per rack. This facility is poised to meet the computing demands for large-scale artificial intelligence (AI) applications.
This data center marks Vietnam's first facility to exceed a capacity of 100 MW, placing it among the top 10 data centers in Southeast Asia. According to a recent report by Cushman & Wakefield, Vietnam currently has 51 MW of operating data center capacity, with 11 MW under construction and an anticipated 28 MW in the future. Despite these developments, the country is still far from the Ministry of Science and Technology's target of achieving 870 MW by 2030.
The speed of investment in data center construction has not kept pace with demand, which is currently exceeding supply by 38%. Mr. Le Ba Tan, CEO of Viettel IDC, noted that the total number of data centers worldwide is expected to reach 11,800 by 2025, reflecting a 30% increase over just two years. The global data center market is projected to continue its steady growth, with a compound annual growth rate (CAGR) of more than 7% leading up to 2030, potentially reaching a market size of approximately 345 billion USD.
Vietnam enjoys several advantages, including lower construction and operating costs compared to many regional countries, resulting in lower service rental prices. A report by Cushman & Wakefield indicates that Vietnam has some of the lowest construction costs in the Asia-Pacific region. This favorable economic landscape has attracted international operators such as Apple, Intel, Canon, Samsung, LG, LEGO, and Airbus to partner with local entities to establish digital transformation strategies.
However, despite the high demand and significant opportunities, the investment landscape for data centers in Vietnam faces several challenges. These include a lack of capital, a shortage of highly skilled technical personnel, and high operational costs. The International Data Group (IDC) forecasts that global data center electricity consumption will more than double, reaching 857 TWh by 2028, with a CAGR of 19.5%. Mr. Vu The Binh, Secretary General of the Vietnam Internet Association, commented that data centers are poised to benefit from foreign demand as investment flows into Vietnam, aligning with global trends of bringing content closer to users.
Nonetheless, domestic investors encounter significant hurdles, including unstable electricity supply and limited international connectivity infrastructure. Currently, Vietnam has only five existing submarine cable routes and two under construction, which serve 72 million internet users, a mere 20-30% compared to its regional counterparts. AI servers, which consume substantial amounts of electricity, present a further challenge. By 2030, it is estimated that 70% of global data center capacity will be dedicated to AI, necessitating new cooling and energy solutions.
According to a World Bank report released in early 2025, electricity consumption in ASEAN data centers is expected to rise from 2% to 6% of total consumption across the region. Without new infrastructure designed to meet these demands, existing data centers will struggle to keep up. This reality has spurred the construction of next-generation data centers to ensure adequate infrastructure, cooling for servers, and sufficient power supply for operations.
As Ms. Trang Bui, General Director of Cushman & Wakefield, pointed out, one of the biggest challenges remains the ability to provide stable electricity to maintain data center operations. Vietnam frequently experiences power outages due to the national grid's struggles to meet peak demand. The government is working to add around 6.6 GW of electricity capacity, but this process may take years to complete. Additionally, complex legal regulations and administrative procedures pose significant barriers to investment.
Moreover, there is a shortage of skilled labor in the construction and operation of data centers, particularly among those capable of building large-scale industrial facilities. Mr. Le Ba Tan remarked that while Vietnam has advantages in electricity costs and abundant land, it still faces limitations compared to other regional countries, particularly regarding the participation of major tech companies in establishing large data centers. Furthermore, AI servers are priced between 8 to 10 billion VND, which is four to fifty times the cost of PC servers, yet they have a very short lifecycle. Thus, investors must carefully consider model and version choices to avoid technology depreciation and ensure investment efficiency.