Digital Realty has launched operations in Malaysia and outlined plans to expand its data centre capacity in Cyberjaya to around 32MW, strengthening its presence in Southeast Asia and extending its regional infrastructure network.
The company said its Malaysian platform will be integrated into its global network of data centres, allowing customers to deploy AI, cloud and data-intensive workloads across multiple markets while maintaining low-latency connectivity.
The expansion centres on a multi-site campus in Cyberjaya that will eventually comprise three facilities connected through dedicated fibre infrastructure. The development is intended to support enterprises transitioning from traditional IT environments to hybrid architectures and AI-focused deployments.
Malaysia plans
Digital Realty's first Malaysian facility, KUL10, is an operational carrier-dense data centre with 1.5MW of IT capacity. The company plans to upgrade the site to its global operating standards and nearly double its capacity by the fourth quarter of 2027.
A second facility, KUL11, is located approximately 500 metres from KUL10. The site provides 15MW of IT capacity and has been designed to support AI and high-performance computing workloads. The facility incorporates energy and water efficiency measures intended to support long-term operational sustainability.
The company has also secured an adjacent 1.6-acre parcel of land approximately 200 metres from KUL10. Digital Realty plans to build a third facility on the site with 14MW of capacity. Completion is targeted for mid-2028.
Together, the facilities are expected to form a connected platform supported by more than 40 network service providers and a range of cloud and connectivity partners.
Regional connectivity
Digital Realty said the Cyberjaya campus will be connected to its PlatformDIGITAL infrastructure and interconnection services, enabling customers to link workloads across regional locations including Singapore and Jakarta.
The company operates more than 300 data centres across more than 30 countries. Customers in Malaysia will be able to access this broader network as they expand operations across Asia Pacific and other regions.
"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 center 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," said Gobind Singh Deo, Minister of Digital, Malaysia.
AI demand
Malaysia continues to attract investment in digital infrastructure as demand for AI workloads, cloud services and regional interconnection capacity increases.
"As demand for AI and data-driven services grows, investments in globally connected digital infrastructure are becoming increasingly important in driving innovation, strengthening regional connectivity and raising Malaysia's visibility in the global digital economy. Beyond infrastructure, these investments support a wider digital ecosystem that enables businesses to innovate, scale and participate more effectively in regional and global digital value chains. Through the Malaysia Digital (MD) national strategic initiative, MDEC remains focused on attracting catalytic digital investments that strengthen the ecosystem, create high-value opportunities and advance Malaysia's aspiration of becoming an AI Nation by 2030," said Anuar Fariz Fadzil, Chief Executive Officer, Malaysia Digital Economy Corporation.
Digital Realty said it expects Malaysia to play an increasingly important role within its Southeast Asian operations as enterprises seek infrastructure capable of supporting distributed computing environments.
Expansion strategy
"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 speed at which we have established a multi-site presence reflects strong customer demand and our long-term commitment to supporting Malaysia's digital growth," said Serene Nah, Managing Director and Head of Asia Pacific, [Digital Realty](https://www.digitalrealty.com?utm_source=chatgpt.com).
"TelcoHub 1 was built to be one of Malaysia's most connected data center 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 centers 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," said Billy Lee.