Digital Realty to Acquire CSF Advisers' TelcoHub 1 Data Center in Malaysia

Why It Matters

The acquisition gives Digital Realty a strategic foothold in a fast‑growing digital hub, enhancing regional connectivity for cloud and AI workloads. It signals Malaysia’s rising importance as a data‑center destination in Southeast Asia.

Key Takeaways

• Acquires TelcoHub 1 data center in Cyberjaya.
• Facility offers 1.5 MW power, 6,000+ dark fiber cores.
• Over 40 network providers, includes AWS, Google, DECIX.
• Adjacent land supports up to 14 MW future expansion.
• Strengthens Digital Realty’s Southeast Asia platform and regional connectivity.

Pulse Analysis

Southeast Asia’s data‑center market is entering a rapid expansion phase, driven by surging demand for cloud services, AI acceleration, and resilient connectivity. Malaysia, in particular, is projected to double its data‑center capacity from 1.26 GW in 2025 to over 2.5 GW by 2030, supported by favorable government policies and a growing ecosystem of hyperscalers. Digital Realty’s move into Cyberjaya aligns with this trajectory, allowing the company to capture emerging workloads while leveraging its global PlatformDIGITAL framework to deliver consistent, secure infrastructure across borders.

TelcoHub 1, the core of the acquisition, is already one of the nation’s most network‑dense facilities, featuring more than 6,000 dark‑fiber cores and connections to key exchange points such as MY IX and DECIX ASEAN. Its 1.5 MW power capacity, combined with the adjacent parcel capable of hosting up to 14 MW, provides ample headroom for enterprises seeking low‑latency, multi‑carrier interconnection. By introducing ServiceFabric, Digital Realty will enable customers to orchestrate cross‑border traffic, simplify hybrid cloud deployments, and scale AI‑intensive applications with granular control over bandwidth and routing.

Beyond immediate technical benefits, the deal underscores a broader strategic shift toward a more interconnected Southeast Asian digital backbone. Digital Realty’s presence complements its existing hubs in Singapore and Jakarta, creating a tri‑city corridor that can serve multinational corporations with regional redundancy and data‑sovereignty options. The company also pledges to prioritize energy‑efficient operations, aligning with Malaysia’s sustainability goals and reinforcing the country’s reputation as a sovereign‑ready, green data‑center destination. This expansion positions Digital Realty to capture a larger share of the region’s multi‑petabyte traffic as digital transformation accelerates across industries.

Deal Summary

Digital Realty announced it will acquire CSF Advisers, the owner of the TelcoHub 1 data center in Cyberjaya, Malaysia, along with adjacent land for future expansion. The acquisition, expected to close in the first half of 2026, expands Digital Realty’s Southeast Asia footprint and supports AI-driven workloads.