Digital Realty enters Malaysia with acquisition of Cyberjaya datacentre

Digital Realty is set to acquire CSF Advisers, the owner of the TelcoHub 1 datacentre in Cyberjaya, marking its expansion into Malaysia to address the country’s fast-growing demand for digital infrastructure services.

The acquisition, expected to close by the middle of this year, not only includes the operational datacentre but also adjacent land capable of supporting a future capacity of 14MW of IT load.

TelcoHub 1 is currently a 1.5MW facility, serving as one of Malaysia’s primary dark fibre interconnect hubs with over 6,000 cores of regional and long-haul fibre. According to PeeringDB, the site hosts over 40 network service providers and offers access to cloud and connectivity platforms such as Amazon Web Services, Google, MyIX, and DECIX ASEAN.

Digital Realty plans to integrate TelcoHub 1 into its global PlatformDigital ecosystem. This will include the rollout of ServiceFabric, the company’s interconnection and orchestration platform, allowing enterprise customers to manage hybrid IT infrastructure across the region.

Serene Nah, managing director and head of Asia-Pacific at Digital Realty, said the company’s expansion into Malaysia will help to address the datacentre needs.

“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 Nah.

“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,” she added.

Digital Realty’s acquisition of CSF Advisers is expected to bolster its regional portfolio. The company is already a dominant player in Singapore – historically the region’s datacentre hub – but the city-state has faced constraints with land and power availability in recent years. Consequently, neighbouring Johor and Cyber Jaya in Greater Kuala Lumpur have emerged as critical zones for datacentre expansion.

In the wider Asia-Pacific region, Digital Realty also operates major campuses in Tokyo and Osaka in Japan; Sydney and Melbourne in Australia; as well as Hong Kong and Seoul. In Southeast Asia, the company’s latest move builds on its established presence in Singapore and its venture into Jakarta, Indonesia.

Upon completion of the deal, CSF Advisers’ chairman and CEO Billy Lee will join Digital Realty along with his local leadership team and over 40 staff members.

Lee highlighted the aggressive growth projections for the local market, noting that total datacentre capacity in Malaysia is projected to double from 1.26GW in 2025 to 2.53GW by 2030.

“Continued expansion is fuelled 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 said sustainability will remain a priority for its newest datacentre location, promising to work with the Malaysian government and industry stakeholders to support national digital priorities and advance energy-efficient datacentre practices, aligned with local regulations and long-term environmental goals.