Singapore – A consortium led by global investment firm KKR and Singapore-based communications group Singtel has entered into binding agreements to acquire full ownership of ST Telemedia Global Data Centres (STT GDC), bringing the approximate enterprise value of the data centre operator to S$13.8b.
The transaction involves the purchase of the remaining 82% stake in the company from its founding shareholder, ST Telemedia, for a total consideration of S$6.6b.
Following completion, KKR is expected to hold a 75% stake in ST Telemedia Global Data Centres, with Singtel owning the remaining 25%. The final ownership structure reflects the conversion of existing redeemable preference shares currently held by both parties. The stated enterprise value includes outstanding leverage as well as committed capital expenditure for projects under development.
“Digital infrastructure remains one of the most compelling long-term investment themes globally as cloud computing and data-rich applications continue to reshape how data is created, stored, and processed,” David Luboff, co-head of KKR Asia Pacific and head of Asia Pacific infrastructure at KKR, stated.
“This transaction represents a rare opportunity to further support a high-quality platform and deepen our strategic partnership with Singtel. We look forward to deploying KKR’s global network and deep digital infrastructure expertise to help STT GDC accelerate its next phase of sustainable, international growth.”
The consortium initially invested S$1.75b in the company in 2024 through preference shares and warrants, marking one of the largest digital infrastructure investments in Southeast Asia during that year. Since that investment, the company’s development pipeline has expanded from 1.4 gigawatts to more than 1.7 gigawatts.
“STT GDC’s diverse geographical footprint increases our exposure to new markets and makes the Singtel Group a stronger data centre player with global reach,” Arthur Lang, group chief financial officer of Singtel, shared.
“We appreciate ST Telemedia’s stewardship of the company and are confident that its seasoned leadership team will continue to scale the solid platform they have built.”
The transaction reflects a strategic shift by ST Telemedia as the scale and capital intensity of the global data centre sector increase. The business is expected to benefit from access to additional long-term capital and infrastructure investment expertise as it enters its next phase of expansion. For KKR and Singtel, the acquisition deepens their exposure to digital infrastructure assets and strengthens their existing partnership in the sector.
“As the data centre sector has fundamentally shifted, its exponential trajectory now requires a different scale of capital and specialised focus for STT GDC’s next exciting phase of continued growth,” Stephen Miller, president & group CEO of ST Telemedia, commented.
“This transaction demonstrates our strategic stewardship while ensuring STT GDC’s ongoing sustainable growth with an optimal partner.”
KKR is investing primarily through its APAC infrastructure strategy, building on previous regional and global investments in data centres, subsea cables and related digital infrastructure platforms. Meanwhile, the transaction aligns Singtel’s longer-term strategy to expand its digital infrastructure portfolio and international footprint.
Completion of the transaction is targeted for the early part of the second half of 2026, subject to customary regulatory approvals and other closing conditions.
