Digital Realty enters Malaysian data center industry

With the acquisition of CSF Advisers, owners of the TelcoHub 1 data center, Digital Realty officially enters the Malaysian data center industry.

Digital Realty will finally be making its entry into Malaysia as the largest global provider of cloud- and carrier-neutral data center, colocation, and interconnection solutions, will be acquiring CSF Advisers, owners of the TelcoHub 1 data center.

The data center, which is located in Cyberjaya, will officially mark Digital Realty’s expansion into the Malaysian market, extending its Southeast Asia platform and reinforces its commitment to support the region’s growing digital infrastructure requirements.

Digital Realty’s entry into the Malaysian data market signifies the growing strength of Malaysia’s data center ecosystem. Statistics show Malaysia’s data market to be one of the fastest growing in the world, with continued investments throughout 2025. The country is also regarded as a credible location for interconnected, secure, and sovereign-ready digital infrastructure serving Southeast Asia.

According to Serene Nah, Managing Director and Head of Asia Pacific, Digital Realty, 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.

“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,” Nah said.

The TelcoHub 1 data center 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.

Future expansion plans in Malaysia

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

Billy Lee, Chairman and Chief Executive Officer of CSF Advisers, together with the local leadership team and more than 40 skilled professionals, are expected to join Digital Realty once the acquisition is completed. The team is expected to continue to support the existing customer base, with Digital Realty also planning 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 2030. 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,” he added.

An integrated data center platform

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.