Digital Realty Enters Malaysia, Fueling Southeast Asia's Digital Ascent

AUSTIN, TX – January 19, 2026 – In a landmark move signaling strong confidence in Malaysia’s burgeoning digital economy, Digital Realty (NYSE: DLR), the world’s largest provider of cloud- and carrier-neutral data centers, has announced its entry into the Malaysian market. The company has executed an agreement to acquire CSF Advisers, the owner of the highly connected TelcoHub 1 data center in Cyberjaya, Greater Kuala Lumpur.

This strategic acquisition, which includes adjacent land for significant future expansion, plants a major flag for Digital Realty in one of Southeast Asia's most dynamic markets. The move is poised to not only strengthen the region's digital backbone but also to accelerate Malaysia's national ambitions to become a hub for artificial intelligence (AI), cloud computing, and next-generation digital services.

Fueling a Digital Powerhouse

Digital Realty's arrival comes at a pivotal moment for Malaysia. The country is in the midst of a massive digital infrastructure scale-up, driven by a confluence of rapid cloud adoption, aggressive government support, and the escalating demands of an AI-powered future. Industry forecasts paint a dramatic picture of this growth, with total data center capacity projected to more than double from 1.26 gigawatts in 2025 to 2.53 gigawatts by 2030.

This explosive growth is underpinned by the government's forward-looking policies, including the MyDIGITAL blueprint and the National Artificial Intelligence Roadmap 2021-2025, which are designed to attract high-value digital investments and cultivate a vibrant ecosystem. Hyperscale cloud providers such as AWS, Google, and Microsoft have already committed to significant investments, creating a powerful ripple effect that necessitates robust, scalable, and highly interconnected data center infrastructure.

“Malaysia is currently in a sustained scale-up phase for digital infrastructure,” said Billy Lee, Chairman and Chief Executive Officer of CSF Advisers, who will be joining Digital Realty along with his team. Lee highlighted the projected capacity growth and the key drivers fueling it, including “rising demand for cloud services, AI acceleration, robust connectivity infrastructure, and supportive government policies.”

A Strategic Hub of Connectivity

The centerpiece of the acquisition is TelcoHub 1, an operational 1.5-megawatt facility that is far more than just a data center. It is described as one of Malaysia's largest dark fiber interconnect hubs, a critical nerve center for data traffic. With over 6,000 fiber cores and more than 40 network service providers, the facility offers dense and diverse connectivity options. This includes direct access to key cloud platforms and vital internet exchanges like MY IX and DECIX ASEAN, which are essential for reducing latency and improving performance for businesses operating in the region.

By acquiring such a network-rich asset, Digital Realty is not just adding megawatts; it is securing a strategic foothold in Malaysia’s data flow. Furthermore, the deal includes adjacent land that can support an additional 14 megawatts of IT load. This provides a clear and immediate path for expansion, ensuring that the company can scale its capacity to meet the surging demand from local enterprises and international hyperscalers looking to expand their footprint in the country.

The acquisitions are expected to close in the first half of 2026, subject to customary closing conditions. Upon completion, the Cyberjaya campus will be fully integrated into Digital Realty's global ecosystem.

Weaving a Regional Digital Fabric

This Malaysian expansion is a crucial piece of Digital Realty's broader Southeast Asia strategy. With established presences in the mature hub of Singapore and the high-growth market of Jakarta, Indonesia, the addition of Kuala Lumpur creates a powerful and resilient regional platform. As Singapore faces land and power constraints, markets like Malaysia—particularly the southern state of Johor and the capital region of Kuala Lumpur—have become prime destinations for data center investment, absorbing spillover demand and creating a more distributed and robust regional infrastructure.

Digital Realty plans to integrate the new campus into PlatformDIGITAL®, its global data center platform. This will enable customers to deploy their critical infrastructure within a consistent, secure, and interconnected environment across the globe. The company will also introduce its ServiceFabric® solution, an orchestration platform that simplifies the management of connectivity and allows customers to seamlessly provision services and connect their infrastructure across Digital Realty’s extensive global footprint.

“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 for 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.”

Investing in a Green and Skilled Future

Beyond the physical infrastructure, Digital Realty’s investment underscores a commitment to local talent and sustainable practices. The entire CSF Advisers team of more than 40 skilled professionals, including its leadership, will join Digital Realty. This move ensures operational continuity for existing customers and retains valuable local expertise, which will be instrumental in navigating the market and driving future growth.

This commitment to local development aligns with the significant economic impact of the data center industry. According to a report from the Asia-Pacific Data Centre Association (APDCA), the sector is projected to support nearly 31,000 jobs in Malaysia by 2030, a substantial increase from 4,400 in 2024.

Furthermore, Digital Realty's focus on sustainability resonates strongly with Malaysia's national agenda. The government has actively promoted green technology through initiatives like the Digital Ecosystem Acceleration (DESAC) scheme, which provides incentives for data centers that adopt energy-efficient practices and use renewable energy. Digital Realty has pledged to work with government and industry stakeholders to advance energy-efficient data center operations, aligning with local regulations and long-term environmental goals.

This strategic alignment positions Digital Realty not merely as a new market entrant, but as a foundational partner in building a resilient, interconnected, and sustainable digital Malaysia for the years to come.