As Vietnam continues its rapid industrialisation, the push for sustainable and eco-friendly development is gaining momentum. A key topic in this transition is the application of artificial intelligence (AI). AI-driven solutions are revolutionising the way industrial parks and smart factories operate, ensuring both economic growth and environmental responsibility. AI is considered as mandatory for the future industrial real estate. 

AI’s role in green industrial real estate 

1. Operational benefits 

AI enhances sustainability while improving operational efficiency. In industrial real estate, AI applications include automated tenant comfort controls, energy management, building security, and resource optimisation. These innovations help reduce costs, lower carbon emissions, and improve tenant experiences. 

Thomas Rooney, Associate Director, Industrial Services at Savills Hanoi, highlighted the growing adoption of AI in industrial developments: “For industrial developments, AI can play a crucial role in energy management, building automation, resource management, and design enhancement. AI algorithms can monitor and enhance operational efficiency by controlling lighting, HVAC, and other systems in real time. AI also assists in monitoring resource usage (water, energy) and predicting maintenance needs, leading to reduced waste and costs. Additionally, generative design and AI-powered simulations help architects and developers create buildings that are more energy-efficient and environmentally friendly.” 

2. Simplifying Green certification processes 

Navigating green certifications like LEED, BREEAM, or Lotus can be complex, but AI simplifies the process. AI-powered platforms track compliance with sustainability standards throughout design, construction, and operations, ensuring buildings meet certification benchmarks. 

As businesses prioritise sustainability and seek green-certified spaces, AI-enhanced green properties can command higher market values and rents. Investing in AI-driven green technology boosts returns through energy efficiency and improved tenant satisfaction. 

Rooney also noted that regulatory bodies may soon mandate AI applications in building management to meet energy efficiency and sustainability targets. With technology advancing and climate policies becoming more stringent, AI-driven building management could become a requirement rather than an option. Industrial real estate developers must stay ahead by proactively adopting AI-powered solutions”. 

Challenges and sustainability considerations in AI adoption 

Despite its benefits, AI adoption can also present sustainability challenges. AI-enabled technologies require serious computing power for model training, processing and data storage. Gartner predicts that at current rates, AI could be responsible for as much as 3.5% of all global electricity consumption by 2030.  

This could become an issue for building owners as they try to bring down their electricity use to meet corporate sustainability goals and comply with possible regulations on energy use.  

However, AI remains a crucial tool that can help buildings operate at their most optimal levels. The reality is AI researchers and developers are increasing their understanding of its carbon footprint every day and innovating their way toward reduction strategies. With a full understanding of the state of sustainability in AI, building owners can trust its ability to support their own initiatives while preparing for future environmental regulations. 

There are initiatives being made by AI players to drastically reduce these issues. Amazon, a major data center operator, is moving forward 100% renewable energy for power, extending the lifespans of their servers, and working to become water positive by 2030 so that more water is returned to communities than is used by their facilities for cooling. Amazon also has a goal to have net zero carbon emissions by 2040. Microsoft’s Azure data centers have a more ambitious goal to be carbon negative by 2030 with similar pathways to achieve it as Amazon. If more data centers follow these giants’ footsteps, then AI’s carbon footprint will decrease even more quickly and become less of a concern for building owners. 

AI and Green Industrial Growth in Viet Nam 

1. Investment in AI and Government support in green industrial development  

According to the global consulting firm IMARC Group, Vietnam's AI market was valued at USD 547.1 million in 2023 and is projected to reach USD 2.06 billion by 2032, with a compound annual growth rate (CAGR) of 15.8%.  

The Viet Nam government has shown a strong intention to adopt AI, contributing to the development of green buildings. Nationwide, the number of green buildings has increased, with an 8% growth recorded recently. This trend is projected to continue in the coming year. Major developers, such as LÕ-GOI (with upcoming projects in Hung Yen or Yen Phong, Bac Ninh, expected to be completed by Q2/2025) or Frasers, are incorporating sustainable practices in their warehouse and factory constructions. These buildings integrate eco-friendly features, which contribute to environmental sustainability and tenant satisfaction. 

2. Overcoming AI adoption challenges for sustainable growth 

Power constraints in Tier-1 markets  

AI adoption in Vietnam faces challenges, particularly power constraints in Tier-1 markets. Rooney explained: “There are many factors driving site selection, but growing constraints on power in Tier-1 markets mean new entrants are now considering sites in less saturated locations, improving speed to market. We expect significant growth of AI-led green industrial projects in Vietnam, especially in emerging Tier-2 provinces outside the traditional hubs, where acquiring large land parcels for AI-ready facilities is easier.”  

High initial investment costs  

The challenge for Viet Nam is that traditional practices in real estate may lead to hesitance in adopting new, AI-driven methods. Furthermore, initial investments for upgrading technology and training can be significant. However, because AI-equipped green premises can achieve higher rent and efficiency will boost the higher returns, real estate business should take the adoption of AI into their new warehouse or manufacturing premises seriously. AI-drive initiatives can be invested in R&D for AI technologies that focus on sustainability, collaborate with tech firms to integrate AI solutions into existing systems, train personnel on AI tools and their implementation in sustainable practices and promote transparency in data usage and outcomes to build trust with stakeholders. 

Skills gap in AI readiness  

There have also been diverging sentiments regarding AI's impact on work within organizations. ManpowerGroup’s report reveals that only 56% of factory floor and frontline workers in APAC are optimistic about AI's impact on their jobs. Hoang Nguyen, National Sales Manager at ManpowerGroup Vietnam, states, “Given the significant challenges posed by the lack of a skilled workforce in AI, alongside high investment costs and concerns about privacy and regulations, businesses should focus on training and upskilling their current employees to bridge the gap and accelerate AI adoption.” 

AI is set to play an increasingly vital role in Vietnam’s industrial real estate landscape. As companies continue integrating AI-powered solutions, industrial parks will become more efficient, environmentally responsible, and economically viable. However, the adoption of AI in green developments should considered not just a trend, but a future of sustainable industrial growth in Vietnam, which requires developers and employers to have a clear strategy to fully achieve its potentials.