Digital Realty enters Malaysia, strengthening Southeast Asia’s digital backbone

Rhea-AI Summary

Digital Realty (NYSE: DLR) agreed to acquire CSF Advisers' TelcoHub 1 data center in Cyberjaya, Malaysia, marking the company's entry into Malaysia. TelcoHub 1 is an operational 1.5 megawatt facility with > 6,000 fiber cores and 40+ network providers, and Digital Realty also agreed to buy adjacent land that can support up to 14 megawatts of IT load. The transactions are expected to close in 1H 2026, subject to customary closing conditions.

Post-close, the campus will join PlatformDIGITAL and receive ServiceFabric interconnection services; the existing local team (~40 staff) will join Digital Realty and the company plans future hiring and sustainability collaboration with Malaysian stakeholders.

Positive

• Adds an operational 1.5 MW data center in Cyberjaya
• Acquires a network‑dense hub with > 6,000 fiber cores and 40+ providers
• Secures adjacent land supporting up to 14 MW for future expansion
• Integration into PlatformDIGITAL and deployment of ServiceFabric for regional connectivity

Negative

• Transaction is subject to customary closing conditions, so timing is not guaranteed
• No purchase price disclosed, limiting immediate visibility into financial impact
• Initial operational capacity is 1.5 MW, requiring significant expansion to meet projected regional demand

Key Figures

TelcoHub 1 capacity: 1.5 megawatts Fiber cores: Over 6,000 cores Network service providers: 40+ providers +5 more

8 metrics

TelcoHub 1 capacity 1.5 megawatts Operational data center IT load in Cyberjaya

Fiber cores Over 6,000 cores Regional and long-haul dark fiber landing at TelcoHub 1

Network service providers 40+ providers Network density at TelcoHub 1 including major platforms

Expansion land capacity Up to 14 megawatts IT load supported by adjacent land in Cyberjaya

Malaysia DC capacity 2025 1.26 gigawatts Projected total data center capacity in Malaysia for 2025

Malaysia DC capacity 2030 2.53 gigawatts Projected total data center capacity in Malaysia by 2030

Local professionals More than 40 CSF Advisers team expected to join Digital Realty

Closing timeline First half of 2026 Expected closing period for the CSF and land acquisitions

Market Reality Check

Price: $166.86 Vol: Volume 2,490,718 is 1.23x...

normal vol

$166.86 Last Close

Volume Volume 2,490,718 is 1.23x the 20-day average of 2,030,484, indicating elevated interest ahead of this expansion news. normal

Technical Price at 163.60 is trading below the 200-day MA of 165.90, and about 12.86% under the 52-week high.

Peers on Argus

DLR gained 1.89% while key peers were mixed: EQIX (-0.06%), AMT (+2.16%), CCI (+...

DLR gained 1.89% while key peers were mixed: EQIX (-0.06%), AMT (+2.16%), CCI (+1.49%), IRM (+3.65%), SBAC (+1.83%). With no peers in the momentum scanner and mixed moves, trading appeared more company-specific than sector-driven.

Historical Context

5 past events · Latest: Jan 06 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 06	Earnings call timing	Neutral	+0.7%	Announcement of Q4 2025 earnings release date and conference call schedule.
Dec 15	Board appointment	Positive	-1.7%	Addition of experienced infrastructure executive Stephen Bolze to the board.
Dec 03	Debt redemption	Positive	+0.8%	Redemption of 2.500% guaranteed notes due 2026 at par plus accrued interest.
Nov 19	Supply agreement	Positive	-0.2%	Signing of $373M supply capacity agreement with Schneider Electric for power gear.
Nov 12	Debt offering	Neutral	-3.5%	Pricing of €600M 2033 and €800M 2037 guaranteed notes for funding flexibility.

Pattern Detected

Recent news has shown mixed price responses, with some positive strategic or balance sheet actions followed by negative or muted reactions, indicating no consistent pattern of how the stock trades around announcements.

Recent Company History

Over the last few months, Digital Realty has focused on financing, balance sheet management, and capacity growth. It priced euro notes totaling €1.4 billion for general and green uses, redeemed €1,075,000,000 of 2.500% notes due 2026, and signed a $373 million supply capacity agreement to support rising data center demand. Governance and leadership were reinforced with a new director appointment effective January 1, 2026. The Malaysia expansion adds to this progression of scaling global infrastructure.

Market Pulse Summary

This announcement highlights Digital Realty’s planned entry into Malaysia via acquisition of the 1.5...

Analysis

This announcement highlights Digital Realty’s planned entry into Malaysia via acquisition of the 1.5 megawatt TelcoHub 1 facility and adjacent land supporting up to 14 megawatts of IT load. It extends PlatformDIGITAL® across Southeast Asia and targets a market where capacity is projected to grow from 1.26 to 2.53 gigawatts by 2030. Investors may watch closing in the first half of 2026 and subsequent utilization of the expanded campus.

Key Terms

dark fiber, interconnect, colocation, hyperscalers, +3 more

7 terms

dark fiber technical

"one of the country's largest dark fiber interconnect hubs with over 6,000 fiber cores"

Dark fiber is unused or unlit optical fiber cable installed in the ground or buildings that can carry data but currently has no active equipment powering it. Investors care because it’s a physical, long-lived infrastructure asset that can be leased or activated to quickly expand network capacity without laying new cable, offering steady, contract-based revenue potential but also requiring upfront capital and facing technology and demand risks.

interconnect technical

"one of the country's largest dark fiber interconnect hubs with over 6,000 fiber cores"

Interconnect is the physical or virtual linking of networks, systems, or service providers so they can exchange data, power, or services—like roads that let cars travel between towns. For investors it matters because how well and cheaply companies interconnect affects their ability to reach customers, generate recurring revenue, control costs, and meet regulatory or reliability standards; stronger interconnects can boost growth and reduce operational risk.

colocation technical

"provider of cloud- and carrier-neutral data center, colocation, and interconnection solutions"

Colocation is the practice of placing a trader’s computer servers inside or next to an exchange’s data center so their orders travel the shortest possible distance to the exchange’s computers. For investors this matters because even tiny gains in speed can mean better trade prices or reduced slippage—like being first in line at a checkout—so firms that colocate can gain steady, measurable advantages or incur extra costs that affect returns.

hyperscalers technical

"Malaysia plays an increasingly important role in the region’s digital ecosystem as hyperscalers, enterprises and platforms scale up"

Hyperscalers are large technology companies that operate massive computing networks and data centers to provide cloud services, data storage, and online infrastructure at an enormous scale. They are essential to the digital economy because they enable businesses and organizations to handle vast amounts of data and run complex applications efficiently. For investors, hyperscalers represent powerful engines of growth and innovation in the technology sector.

interconnection technical

"cloud- and carrier-neutral data center, colocation, and interconnection solutions"

Interconnection is the physical or contractual linking of two or more networks, systems, or infrastructures—such as power grids, telecom networks, or data centers—so they can exchange energy, data or services. For investors it matters because better interconnection can lower costs, increase reliability and open new markets, much like building bridges between islands that let people and goods move more efficiently and boost trade and value.

ServiceFabric® technical

"plans to introduce its interconnection and orchestration solution, ServiceFabric®, to the campus"

servicefabric® is a commercial software platform that helps companies run and manage complex, high‑traffic applications by breaking them into smaller, independently running parts and keeping those parts healthy, updated and balanced across many servers or cloud machines. For investors, it matters because such platforms can reduce downtime, speed rollout of new features, and influence operating costs and vendor dependency—factors that affect a firm’s reliability and long‑term growth prospects.

long-haul fiber technical

"with more than 6,000 cores of regional and long-haul fiber landing in this facility"

Long-haul fiber is the high-capacity optical cable network that carries large volumes of internet, phone and cloud traffic across long distances—typically between cities or regions—much like a highway system for data. It matters to investors because these networks support growing demand, generate steady revenue from long-term contracts, and require large upfront spending, so ownership affects a company’s growth potential, cash flow stability and capital needs.

AI-generated analysis. Not financial advice.

Acquisition of a highly connected data center in Cyberjaya extends PlatformDIGITAL® into one of Southeast Asia’s fastest-growing digital markets

Digital Realty's newly acquired TelcoHub 1 data center in Cyberjaya, Malaysia, one of the country's largest dark fiber interconnect hubs with over 6,000 fiber cores and 40+ network service providers

AUSTIN, Texas, Jan. 19, 2026 (GLOBE NEWSWIRE) -- Digital Realty (NYSE: DLR), the largest global provider of cloud- and carrier-neutral data center, colocation, and interconnection solutions, today announced its planned entry into Malaysia through the execution of the agreement to acquire CSF Advisers, owners of the TelcoHub 1 data center located in Cyberjaya, one of Greater Kuala Lumpur’s most established data center hubs. Digital Realty’s expansion into the Malaysian market extends its Southeast Asia platform and reinforces its commitment to support the region’s growing digital infrastructure requirements.

TelcoHub 1 is an operational 1.5 megawatt 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. It 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. In conjunction with TelcoHub 1, Digital Realty has also agreed to acquire adjacent land that can support up to 14 megawatts of IT load, providing clear capacity for future expansion.

These acquisitions are expected to close in the first half of 2026, subject to customary closing conditions.

Building on this foundation, the Malaysia campus will be integrated into PlatformDIGITAL^®, Digital Realty’s global data center platform, enabling customers to deploy infrastructure within a consistent, secure, and interconnected environment, as digital and AI-driven workloads scale. Digital Realty plans to introduce its interconnection and orchestration solution, ServiceFabric^®, to the campus, providing customers with global connectivity and greater flexibility to manage their digital infrastructure across the region.

Together, these capabilities build on CSF's existing strengths and enhance Digital Realty’s ability to support both local customers and organizations with regional footprints anchored in Singapore, by offering complementary capacity and connectivity across Southeast Asia.

“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.”

Upon completion of the acquisition, Billy Lee, Chairman and Chief Executive Officer of CSF Advisers, together with the local leadership team and more than 40 skilled professionals, will join Digital Realty. Their combined expertise will be instrumental in supporting CSF's diverse customer base spanning enterprises, cloud, and digital service providers. Digital Realty plans to expand the local team over time to support future growth and operational scale.

“Malaysia is currently in a sustained scale-up phase for digital infrastructure, with total data center capacity projected to grow from 1.26 gigawatts in 2025 to 2.53 gigawatts by 2030¹. Continued expansion is fueled 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's entry into Malaysia will underscore its long-term investment commitment in the country and further establish Malaysia as a credible location for interconnected, secure, and sovereign-ready digital infrastructure serving Southeast Asia. Sustainability will be a key focus, with Digital Realty working alongside the Malaysian government and industry stakeholders to support national digital priorities and advance energy-efficient data center practices, aligned with local regulations and long-term environmental goals.

Digital Realty's expansion into Malaysia will build on its established Southeast Asia presence in Singapore and Jakarta. The company will continue to evaluate opportunities to expand capacity, capabilities, and partnerships in the region, in line with its broader regional strategy.

About Digital Realty
Digital Realty brings companies and data together by delivering the full spectrum of data center, colocation, and interconnection solutions. PlatformDIGITAL®, the company’s global data center platform, provides customers with a secure data meeting place and a proven Pervasive Datacenter Architecture (PDx®) solution methodology for powering innovation, from cloud and digital transformation to emerging technologies like artificial intelligence (AI), and efficiently managing Data Gravity challenges. Digital Realty gives its customers access to the connected data communities that matter to them with a global data center footprint of 300+ facilities in 50+ metros across 25+ countries on six continents. To learn more about Digital Realty, please visit digitalrealty.com or follow us on LinkedIn and X.

For Additional Information

Media Contacts
Joyce Ng
Digital Realty
jong@digitalrealty.com

Investor Relations
Jordan Sadler / Jim Huseby
Digital Realty
+1 415 275 5344
InvestorRelations@digitalrealty.com

Safe Harbor Statement

This press release contains forward-looking statements which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially, including statements related to PlatformDIGITAL®, the company’s acquisition of CSF Advisers, the company’s strategy, customer demand and expectations for the Asia Pacific region and sustainability goals. For a list and description of risks and uncertainties, see the reports and other filings by the company with the U.S. Securities and Exchange Commission. The company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise

¹ Data from Asia Pacific Data Center Association report (July 2025)

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/b4f92da6-3511-4448-9c63-51d1b3f92f6f

FAQ

What did Digital Realty announce about entering Malaysia (NYSE: DLR) on January 19, 2026?

Digital Realty agreed to acquire CSF Advisers' TelcoHub 1 in Cyberjaya and adjacent land, with expected close in 1H 2026.

What capacity and connectivity does TelcoHub 1 provide for DLR shareholders?

TelcoHub 1 is an operational 1.5 MW facility with > 6,000 fiber cores and 40+ network providers; adjacent land can support up to 14 MW.

How will Digital Realty integrate the Malaysia campus with PlatformDIGITAL (DLR)?

The campus will be integrated into PlatformDIGITAL and will receive ServiceFabric interconnection and orchestration to enable regional and global connectivity.

When will the acquisition of TelcoHub 1 by Digital Realty (DLR) close?

The acquisitions are expected to close in the first half of 2026, subject to customary closing conditions.

Will existing CSF Advisers staff join Digital Realty after the TelcoHub 1 acquisition?

Yes; the CEO Billy Lee, the local leadership team, and more than 40 professionals are expected to join Digital Realty upon completion.