Digital Realty, a leading US-based data center firm, has officially entered the Malaysian market, marking a significant step in its Southeast Asian expansion.
This move, announced on January 20, 2026, involves the acquisition of CSF Advisers, the owners of the TelcoHub 1 facility in Cyberjaya, a key digital hub in Malaysia.
Strategic Importance of Cyberjaya in Digital Realty’s Expansion
The TelcoHub 1 facility is one of Malaysia's largest dark fiber interconnect hubs, boasting over 6,000 fiber cores and connections to more than 40 network service providers.
This acquisition extends Digital Realty’s PlatformDIGITAL® into one of the region’s fastest-growing digital markets, strengthening Southeast Asia’s digital backbone.
Impact on Malaysia’s Digital Economy
Malaysia, with its rapidly expanding tech ecosystem, stands to benefit immensely from this development as data center capacity is critical for supporting cloud computing, AI, and digital transformation.
The deal also includes land for future expansion, with potential for an additional 14MW capacity, signaling Digital Realty’s long-term commitment to the region.
Historical Context of Data Centers in Southeast Asia
Southeast Asia has seen a surge in data center investments over the past decade, driven by increasing internet penetration and the rise of tech giants establishing regional hubs.
Digital Realty’s entry into Malaysia follows its successful operations in other regional markets like Singapore, positioning it as a major player in the industry.
Future Prospects and Challenges
Looking ahead, the company expects the transaction to close in the first half of 2026, pending regulatory approvals, paving the way for enhanced connectivity and infrastructure in Malaysia.
However, challenges such as energy sustainability and regulatory hurdles in the data center sector could impact the pace of expansion in the region.
Despite these challenges, industry experts view this move as a game-changer for Malaysia’s ambition to become a leading digital economy in Southeast Asia.
For more details on Digital Realty’s global operations, visit their official website.
Andrew Lee
