KKR and Singtel Consortium to Acquire STT GDC for $10.2 Billion, Expanding Southeast Asia Data Center Footprint

en.Wedoany.com Reported - A consortium formed by global investment firm KKR and Singapore Telecommunications (Singtel) has officially signed an agreement on February 4 to acquire the remaining approximately 82% stake in ST Telemedia Global Data Centres (STT GDC), in a deal valued at approximately S$6.6 billion (about US$5.1 billion). This transaction implies a total enterprise value for STT GDC of approximately S$13.8 billion (about US$10.9 billion, equivalent to US$10.2 billion), marking the formal landing of one of the largest digital infrastructure transactions in Southeast Asia.

This transaction is not a sudden move, but rather a comprehensive deepening of the consortium's existing investment in the data center platform. The consortium had previously invested S$1.75 billion (about US$1.3 billion) in STT GDC in 2024, setting a record at the time for the largest investment in Southeast Asia's digital infrastructure sector. Upon completion of this transaction, and accounting for the conversion of redeemable preference shares held by both parties, KKR and Singtel will hold approximately 75% and 25% equity stakes in STT GDC respectively, with the original parent company ST Telemedia fully exiting. The entire transaction is expected to close in the first half of 2026, subject to customary closing conditions and regulatory approvals.

STT GDC is a data center platform founded in 2014 and headquartered in Singapore, which has rapidly grown into one of the leading operators in Asia and globally. To date, the company has over 100 data center facilities across 12 major markets in the Asia-Pacific region, as well as the UK and Europe, with a total design capacity of up to 2.3 gigawatts (GW). Its services encompass high-quality colocation, connectivity support, and round-the-clock operational support, primarily serving hyperscale cloud service providers and large enterprise clients.

This acquisition is a key step in Singtel's "Singtel28" strategic plan, aimed at repositioning the group's business structure by expanding into high-growth digital infrastructure sectors. Singtel Group CFO Arthur Lang stated that STT GDC's diversified geographical footprint will broaden Singtel's business reach into new markets and create strategic synergies with the group's existing data center platform, Nxera, transforming Singtel into a data center enterprise with greater global influence.

For KKR, this deal represents its largest infrastructure investment in the Asia-Pacific region to date, demonstrating its strong conviction in the long-term growth resilience of data centers as an asset class. David Luboff, Co-Head of Asia Pacific and Head of Asia Pacific Infrastructure at KKR, noted that as cloud computing and data-intensive applications continue to reshape how data is created, stored, and processed, digital infrastructure remains one of the most attractive long-term investment themes globally.

Since receiving its initial capital injection in 2024, STT GDC's business pipeline has rapidly expanded from 1.4GW to over 1.7GW. As demand for artificial intelligence and cloud services continues to accelerate, the data center industry is ushering in a new wave of growth. Singtel expects that the operational capacity of its Nxera data centers will double from 200 megawatts (MW) in 2026 to over 400MW in the medium term. STT GDC is also actively addressing emerging workloads such as high-performance computing through initiatives like establishing AI innovation centers.

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