How Digital Realty's Cyberjaya Expansion Connects Malaysia

Malaysia is strengthening its credentials as a regional connectivity hub, with Digital Realty unveiling its plans to expand its Cyberjaya footprint.

The company plans a 32MW expansion, designed to support the growing demands of cloud providers and telco operators across Southeast Asia.

As AI applications, cloud services and data-intensive workloads place greater demands on networks, operators are looking beyond traditional hubs to locations that can combine scale, resilience and low-latency connectivity.

Digital Realty believes Malaysia is well placed to meet those requirements.

The expansion forms part of the company's broader Asia-Pacific growth plans and integrates Malaysia into a global platform spanning more than 300 data centres across more than 30 countries.

For telco operators, the development creates another major interconnection point within a region where demand for cross-border connectivity continues to grow.

A connectivity hub for Southeast Asia

At the heart of the investment is a three-site campus in Cyberjaya connected through dedicated fibre infrastructure.

The first facility, KUL10, formerly known as TelcoHub 1, is already operational and currently provides 1.5MW of IT capacity. Digital Realty plans to upgrade the site in line with its global standards, with capacity expected to nearly double by the fourth quarter of 2027.

Alongside it is KUL11, a newly-acquired facility offering 15MW of IT capacity. Designed to support AI and high-performance computing workloads, the site incorporates energy-efficient and water-efficient design principles.

A third facility, planned on an adjacent 1.6-acre parcel of land, is expected to add a further 14MW when it comes online in mid-2028. The development is intended to support both hybrid colocation environments and AI-ready deployments.

Together, the facilities will form a connected campus supported by more than 40 network service providers, creating a dense ecosystem of cloud providers and enterprises.

That connectivity focus is core to Malaysia's digital ambitions.

YB Gobind Singh Deo, Minister of Digital for Malaysia, said: “Digital Realty’s investment marks an important step in strengthening Malaysia’s position as a sovereign, interconnected and sustainable digital infrastructure hub.

“As demand for cloud, AI and data-driven services continues to accelerate, the development of high-quality, globally connected data centre infrastructure will be critical in supporting innovation, attracting investment and enabling Malaysia’s digital economy to grow with resilience and scale.

“Investments in advanced digital infrastructure such as this are essential to supporting Malaysia’s AI ambitions and strengthening our position as a regional innovation hub.”

Supporting AI-driven network demand

The Cyberjaya development arrives as telco operators and digital service providers grapple with rapidly changing traffic patterns driven by AI adoption.

Digital Realty sees Malaysia as an increasingly important interconnection point within its regional footprint, helping customers deploy workloads across multiple markets while maintaining access to cloud platforms, enterprises and network operators.

Serene Nah, Managing Director and Head of Asia Pacific at Digital Realty, said: “The establishment of our Malaysia presence marks an important milestone in Digital Realty’s Southeast Asia expansion.

“As digital adoption accelerates and AI-driven workloads become more distributed and latency-sensitive, customers require infrastructure that is scalable and deeply interconnected.

“Malaysia plays a key role as an interconnection hub within our regional footprint, enabling customers to seamlessly deploy and manage workloads across markets.

“By integrating our Cyberjaya facilities into PlatformDIGITAL, we will extend a connected data community that spans key hubs such as Singapore and Jakarta."

The campus will also connect customers into Digital Realty's PlatformDIGITAL ecosystem and ServiceFabric interconnection platform, enabling organisations to establish links between infrastructure deployments across regional markets.

Expanding beyond local networks

For existing customers of TelcoHub 1, the transition into Digital Realty's global portfolio provides access to a significantly larger interconnection ecosystem.

Billy Lee, Chairman of CSF Advisers Sdn Bhd and Advisor for Malaysia at Digital Realty, said: “TelcoHub 1 was built to be one of Malaysia’s most connected data centre facilities, trusted by a diverse ecosystem of enterprises, carriers and cloud providers.

“Becoming part of Digital Realty enables us to take this foundation further by integrating into a global interconnection platform that spans more than 300 data centres worldwide.

“This evolution delivers immediate value to our customers, who will be able to access a broader interconnection ecosystem and scale their infrastructure beyond Malaysia with greater flexibility.

"At the same time, our local team remains at the core of this journey, now strengthened by Digital Realty’s global expertise, operational discipline and long-term investment approach."

As the campus expands, Digital Realty also plans to grow its local workforce. 

The project adds another strategically connected location within Southeast Asia's evolving digital infrastructure landscape, strengthening the network links that underpin AI and enterprise services across the region.