Digital Realty has taken its first step into Malaysia’s fast growing data center market through an agreement to acquire CSF Advisers, the owners of the TelcoHub 1 facility in Cyberjaya, a major data center hub in Greater Kuala Lumpur. The move expands Digital Realty’s Southeast Asia footprint and positions the company to tap rising regional demand for cloud, interconnection and AI ready infrastructure.
TelcoHub 1 is an operational 1.5 megawatt data center and one of Malaysia’s largest dark fiber interconnect hubs. The facility hosts more than 6,000 cores of regional and long haul fiber and supports over 40 network service providers. It also provides access to major platforms including AWS, Google, MY IX and DE CIX ASEAN, making it one of the most network dense data centers in the country.
Alongside the data center acquisition, Digital Realty has agreed to purchase adjacent land that can support up to 14 megawatts of additional IT load. This gives the company a clear expansion runway as customer requirements scale. The transactions are expected to close in the first half of 2026, subject to customary conditions.
Once completed, the Malaysia campus will be integrated into PlatformDIGITAL, Digital Realty’s global data center platform. Customers will be able to deploy infrastructure within a consistent and secure environment while benefiting from global connectivity. Digital Realty also plans to introduce its ServiceFabric interconnection and orchestration solution at the site, enabling enterprises and service providers to manage hybrid and multi region infrastructure more flexibly.
The Malaysia entry is designed to complement Digital Realty’s existing presence in Singapore and Jakarta. By adding capacity and interconnection options in Cyberjaya, the company aims to support both local customers and regional players that currently anchor their Southeast Asia operations in Singapore.
Digital Realty’s management sees Malaysia as an increasingly strategic market as digital infrastructure demand accelerates. Hyperscalers, enterprises and digital platforms are expanding capacity needs, driven by cloud adoption, AI workloads and the need for resilient and well interconnected infrastructure.
As part of the acquisition, CSF Advisers Chairman and Chief Executive Officer Billy Lee, along with the local leadership team and more than 40 professionals, will join Digital Realty. The company plans to grow the Malaysia team over time to support expansion and operational scale.
Malaysia’s data center sector is in a sustained growth phase, with total capacity projected to rise from 1.26 gigawatts in 2025 to 2.53 gigawatts by 2030. Growth is being fueled by cloud demand, AI acceleration, strong connectivity and supportive government policies, positioning the country as a key digital infrastructure hub in Southeast Asia.
Sustainability will be a core focus of Digital Realty’s Malaysia strategy. The company plans to work with government and industry stakeholders to support national digital priorities while advancing energy efficient data center practices aligned with local regulations and long term environmental goals.
RAJANI BABURAJAN
