News

Data

Asia

Digital Realty Enters Malaysia with Strategic Acquisition of Cyberjaya Interconnect Hub

Global data center giant Digital Realty expands its Southeast Asian footprint by acquiring CSF Advisers’ TelcoHub 1 facility.

Global data center giant Digital Realty expands its Southeast Asian footprint by acquiring CSF Advisers’ TelcoHub 1 facility.

Global data center giant Digital Realty expands its Southeast Asian footprint by acquiring CSF Advisers’ TelcoHub 1 facility.

NewDecoded

Published Jan 20, 2026

Jan 20, 2026

4 min read

Digital Realty has announced its formal entry into the Malaysian market through the acquisition of CSF Advisers, the owner of the TelcoHub 1 data center in Cyberjaya. This strategic move, expected to close in the first half of 2026, marks a significant expansion for the global provider of carrier-neutral solutions. By securing one of the region's most connected facilities, the company aims to strengthen the digital backbone of Southeast Asia. Digital Realty will integrate this new campus into its global PlatformDIGITAL network.

TelcoHub 1 is a highly dense connectivity hub featuring over 6,000 dark fiber cores and hosting more than 40 network service providers. The facility provides critical access to major platforms including Amazon Web Services, Google, and the Malaysia Internet Exchange. While the current operational load is 1.5 megawatts, the acquisition includes adjacent land capable of supporting an additional 14 megawatts of capacity. This combination of existing connectivity and future growth potential allows for immediate regional integration.

The expansion into Malaysia builds upon Digital Realty’s established presence in Singapore and Jakarta. This strategic approach addresses the increasing demand for digital infrastructure as capacity constraints in Singapore push workloads across the border. By offering a dual-market solution, the company can provide high-value connectivity in established hubs while scaling capacity in emerging markets. Customers will benefit from the ServiceFabric orchestration solution to manage digital infrastructure seamlessly across the region.

Malaysia’s digital economy is currently in a sustained scale-up phase, with total data center capacity projected to double by 2030. This acquisition is expected to bolster the local economy by supporting the nation's digital ambitions and fostering local talent development. Over 40 skilled professionals from CSF Advisers, including leadership, will join Digital Realty to ensure operational continuity. The investment underscores Malaysia’s status as a credible location for secure and sovereign-ready digital infrastructure.

Sustainability remains a core focus as Digital Realty works with local stakeholders to advance energy-efficient data center practices. These efforts align with national environmental goals and local regulations aimed at managing the surge in AI-driven workloads. The company intends to continue evaluating regional opportunities to expand its capabilities and partnerships in the future. This long-term commitment is designed to help shape how regional infrastructure is built for the coming decades.


Decoded Take

Decoded Take

Decoded Take

The acquisition of TelcoHub 1 is a calculated play to secure a strategic carrier hotel in Cyberjaya rather than simply building raw wholesale capacity. While competitors are rushing to build massive hyperscale campuses in Johor to handle overflow from Singapore, Digital Realty is capturing the network-dense heart of the Malaysian internet. By controlling a facility where 40 networks and major cloud on-ramps meet, they create a strategic choke point that forces other providers to connect through them. This move successfully positions Malaysia as a high-value connectivity peer to Singapore, leveraging the AI infrastructure boom to turn local fiber density into a global competitive advantage.

Share this article

Related Articles

Related Articles

Related Articles