New York, Jan 19, 2026, 13:20 ET — Market closed.
- Digital Realty is set to enter Malaysia through a deal to acquire CSF Advisers along with its TelcoHub 1 data center located in Cyberjaya
- U.S. markets remain closed for Martin Luther King Jr. Day. On Friday, data center stocks saw Digital Realty rise roughly 2%
- Investors are focused on Tuesday’s reopening, looking for clues on tariff concerns and upcoming earnings milestones
Digital Realty announced Monday it’s entering Malaysia with the acquisition of CSF Advisers, the owners of the TelcoHub 1 data center in Cyberjaya. The move extends the U.S. data center landlord’s reach in Southeast Asia.
U.S. stock markets remained closed Monday in observance of Martin Luther King Jr. Day. Trading is scheduled to pick up again on Tuesday. (New York Stock Exchange)
Why this matters now: Data center stocks have turned into a quick barometer for AI spending, though investors are dividing the sector into clear winners and uncertain players — those owning power, land, and network connections versus those still scrambling to acquire them.
The split may intensify this week. U.S. tech shares listed in Europe dropped after President Donald Trump threatened to expand tariffs on several European nations, weighing on Nasdaq 100 futures and dampening sentiment for growth stocks ahead of Tuesday’s market open. (Reuters)
Digital Realty, the REIT specializing in server space and power leases, confirmed TelcoHub 1 is an active 1.5-megawatt facility and among Malaysia’s bigger dark-fiber interconnect hubs, boasting over 6,000 fiber cores and more than 40 network providers. The company also signed a deal to purchase adjacent land capable of supporting up to 14 megawatts of “IT load” — the power dedicated to customer servers — with the transaction expected to close in H1 2026, pending usual approvals. Financial details were not disclosed. “Malaysia plays an increasingly important role in the region’s digital ecosystem,” said Serene Nah, Digital Realty’s Asia Pacific head. CSF Advisers CEO Billy Lee added the country is undergoing a “sustained scale-up phase” in digital infrastructure. (GlobeNewswire)
Markets were closed Monday, so Friday’s closing numbers stand as the latest update. Digital Realty (DLR) rose roughly 1.9% to $163.60. Its bigger rival, Equinix (EQIX), barely moved, finishing at $801.78. Shares of Vertiv (VRT) and Eaton (ETN), both linked to power and cooling gear for data centers, gained 2.5% and 3.1%, respectively. The Pacer Data & Infrastructure Real Estate ETF (SRVR) climbed about 1%.
Malaysia isn’t just another spot for investors to consider. The draw lies in its connectivity and room to grow, providing a viable alternative to the region’s more congested hubs without sacrificing access to key cloud platforms. It’s a compelling option for multinationals looking to diversify.
Power plays an increasingly important role, and Google’s latest move underscores that. The tech giant inked a deal to purchase electricity from a proposed gas plant in Illinois equipped with carbon capture and storage technology. This signals how hyperscalers are broadening their search for reliable, 24/7 energy as their consumption grows. (Reuters)
The downside is clear. Digital Realty didn’t disclose a purchase price or how the deal will be funded, and cross-border transactions often drag on. Any delays in closing, permits, or construction schedules could postpone returns and leave investors uncertain about the payoff.
As U.S. trading restarts Tuesday, investors will be eyeing whether the Malaysia shift boosts the wider data center sector or gets overshadowed by risk-off sentiment triggered by tariff news. They’ll also be scanning for filings detailing financing and early clues on whether pricing power endures amid fresh supply hitting the market.
Digital Realty is set to release its fourth-quarter results on Feb. 5 after the market closes, followed by a conference call. Investors will be watching closely for details on how Malaysia factors into the company’s 2026 capital expenditures. (GlobeNewswire)
