Digital Realty (NYSE: DLR), the largest global provider of cloud- and carrier-neutral data center, colocation, and interconnection solutions, today announced its planned entry into Malaysia through the execution of the agreement to acquire CSF Advisers, owners of the TelcoHub 1 data center located in Cyberjaya, one of Greater Kuala Lumpur’s most established data center hubs. Digital Realty’s expansion into the Malaysian market extends its Southeast Asia platform and reinforces its commitment to support the region’s growing digital infrastructure requirements.
TelcoHub 1 is an operational 1.5 megawatt data center that is considered one of Malaysia’s largest dark fiber interconnect hubs, with more than 6,000 cores of regional and long-haul fiber landing in this facility. It is also among the most network-dense data centers, hosting over 40 network service providers, including access to key platforms such as AWS, Google, MY IX and DECIX ASEAN, according to peeringdb.com. In conjunction with TelcoHub 1, Digital Realty has also agreed to acquire adjacent land that can support up to 14 megawatts of IT load, providing clear capacity for future expansion.
These acquisitions are expected to close in the first half of 2026, subject to customary closing conditions.
Building on this foundation, the Malaysia campus will be integrated into PlatformDIGITAL®, Digital Realty’s global data center platform, enabling customers to deploy infrastructure within a consistent, secure, and interconnected environment, as digital and AI-driven workloads scale. Digital Realty plans to introduce its interconnection and orchestration solution, ServiceFabric®, to the campus, providing customers with global connectivity and greater flexibility to manage their digital infrastructure across the region.
Together, these capabilities build on CSF’s existing strengths and enhance Digital Realty’s ability to support both local customers and organizations with regional footprints anchored in Singapore, by offering complementary capacity and connectivity across Southeast Asia.
“Malaysia plays an increasingly important role in the region’s digital ecosystem as hyperscalers, enterprises and platforms scale up, and infrastructure requirements evolve toward greater resilience, interconnection, and readiness for more complex workloads,” said Serene Nah, Managing Director and Head of Asia Pacific, Digital Realty. “Our entry into Malaysia will bring our global platform, operational expertise, and long-term investment approach into the local market, support the country’s digital ambitions, and help to shape how regional infrastructure is built for the future.”
Upon completion of the acquisition, Billy Lee, Chairman and Chief Executive Officer of CSF Advisers, together with the local leadership team and more than 40 skilled professionals, will join Digital Realty. Their combined expertise will be instrumental in supporting CSF’s diverse customer base spanning enterprises, cloud, and digital service providers. Digital Realty plans to expand the local team over time to support future growth and operational scale.
“Malaysia is currently in a sustained scale-up phase for digital infrastructure, with total data center capacity projected to grow from 1.26 gigawatts in 2025 to 2.53 gigawatts by 20301. Continued expansion is fueled by rising demand for cloud services, AI acceleration, robust connectivity infrastructure, and supportive government policies,” said Lee. “We are excited to join Digital Realty and hope this acquisition will enhance our connectivity solutions for customers, support local talent development, and contribute to Malaysia’s maturing digital infrastructure ecosystem.”
Digital Realty’s entry into Malaysia will underscore its long-term investment commitment in the country and further establish Malaysia as a credible location for interconnected, secure, and sovereign-ready digital infrastructure serving Southeast Asia. Sustainability will be a key focus, with Digital Realty working alongside the Malaysian government and industry stakeholders to support national digital priorities and advance energy-efficient data center practices, aligned with local regulations and long-term environmental goals.
Digital Realty’s expansion into Malaysia will build on its established Southeast Asia presence in Singapore and Jakarta. The company will continue to evaluate opportunities to expand capacity, capabilities, and partnerships in the region, in line with its broader regional strategy.
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