Global data center provider Digital Realty, yesterday announced it plans to enter Malaysia by acquiring CSF Advisers, owners of the TelcoHub 1 data center, one of Greater Kuala Lumpur’s most established data center hubs. This will mark the company’s third presence in Southeast Asia after Singapore and Jakarta, the company says in a press statement. In addition, Digital Realty has also agreed to acquire adjacent land that can support up to 14 megawatts (MW) of IT load, for future expansion.
These acquisitions are expected to complete in the first half of 2026, following which, Billy Lee, Chairman and Chief Executive Officer of CSF Advisers, together with its local leadership team and more than 40 skilled professionals, will join Digital Realty.
Located in Cyberjaya, TelcoHub 1 is an operational 1.5 MW 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. The facility 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.
Also upon completion of the agreement, TelcoHub 1 will be integrated into PlatformDIGITAL®, Digital Realty’s global data center platform which enables customers to deploy infrastructure within a consistent, secure, and interconnected environment. The firm also plans to introduce its interconnection and orchestration solution, ServiceFabric®, to the campus. This provides customers with global connectivity and greater flexibility to manage their digital infrastructure across the region.
“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.”
In her Linkedin post, Nah added: “Malaysia is entering a phase where scale, innovation, and sustainability are top of mind, in addition to speed and reliability. With digital demand continuing to rise across Southeast Asia, how infrastructure is planned and operated becomes increasingly important. What stands out to me about Malaysia is its readiness for the next phase. This is the right moment to build and invest in digital infrastructure designed for long term demand.”
Billy Lee of CSF Advisers said: “Malaysia is currently in a sustained scale-up phase for digital infrastructure, with total data center capacity projected to grow from 1.26 GW in 2025 to 2.53 GW by 2030. Continued expansion is fuelled by rising demand for cloud services, AI acceleration, robust connectivity infrastructure, and supportive government policies. 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.”