Digital Realty enters Malaysian data center market

Digital Realty has announced its planned entry into Malaysia through an agreement to acquire CSF Advisers, owner of the TelcoHub 1 data center in Cyberjaya, marking a strategic expansion of its Southeast Asia data center footprint.

Establishing a foothold in Greater Kuala Lumpur
The acquisition centers on TelcoHub 1, an operational 1.5 MW data center located in Cyberjaya, one of Greater Kuala Lumpur’s most established data center clusters. The facility functions as a major dark fiber interconnection hub in Malaysia, with more than 6,000 cores of regional and long-haul fiber terminating on site. It hosts over 40 network service providers and provides access to major cloud and exchange platforms, including AWS, Google, MY IX and DE-CIX ASEAN.

In parallel, Digital Realty has agreed to acquire adjacent land capable of supporting up to 14 MW of additional IT load. This provides a defined path for campus-style expansion as demand for colocation, cloud connectivity and interconnection services increases.

The transactions are expected to close in the first half of 2026, subject to customary regulatory and closing conditions.

Integration into a regional data center platform
Following completion, the Malaysia site will be integrated into PlatformDIGITAL, Digital Realty’s global data center architecture designed to support standardized deployment, security and interconnection across regions. The company also plans to introduce its ServiceFabric interconnection and orchestration layer at the campus, enabling customers to manage connectivity and infrastructure workflows across multiple Digital Realty locations.

This integration is intended to complement Digital Realty’s existing presence in Singapore and Jakarta, offering customers regional diversity, improved resilience and lower-latency connectivity for cloud, enterprise and AI-driven workloads.

Responding to Malaysia’s infrastructure growth
Malaysia’s data center market is in an expansion phase, with national capacity projected to grow from approximately 1.26 GW in 2025 to 2.53 GW by 2030. Growth drivers include rising cloud adoption, increased AI compute requirements, strong fiber connectivity and government policies supporting digital infrastructure development.

By entering the Malaysian market, Digital Realty positions itself to serve both domestic demand and regional workloads anchored in Singapore, while providing sovereign-ready infrastructure options within Southeast Asia.

Continuity of local expertise and sustainability focus
Upon completion of the acquisition, CSF Advisers’ leadership team, including Chairman and CEO Billy Lee, along with more than 40 staff, will join Digital Realty. The combined teams are expected to support existing customers and scale operations as additional capacity is developed.

Digital Realty has indicated that sustainability and energy efficiency will be core considerations in the development of the Malaysia campus, aligning with local regulatory requirements and longer-term environmental objectives. The move reinforces the company’s long-term investment strategy in Southeast Asia and its focus on interconnected, scalable digital infrastructure.