Funds managed by KKR and Singtel have agreed to buy the remaining stake in ST Telemedia Global Data Centres (STT GDC) in a deal that values the data centre operator at S$13.8 billion ($10.9 billion), marking one of Southeast Asia’s largest digital infrastructure transactions.
Under the agreement, the KKR-led consortium will acquire the remaining 82% of STT GDC from founding shareholder ST Telemedia for S$6.6 billion ($5.1 billion).
On completion, KKR and Singtel will hold 75% and 25% stakes respectively, after the conversion of existing redeemable preference shares.
The deal underscores intensifying investor appetite for data centres as cloud computing and artificial intelligence drive demand for capacity across Asia and Europe.
The implied enterprise value includes leverage and capital expenditure for committed projects, the companies said.
KKR and Singtel first invested S$1.75 billion in STT GDC in 2024 through preference shares and warrants, in what was then the region’s largest digital infrastructure investment.
Since that investment, STT GDC has expanded its development pipeline to more than 1.7 gigawatts from 1.4 GW.
Founded in 2014 and headquartered in Singapore, STT GDC operates one of the world’s fastest-growing data centre platforms, with 2.3 GW of design capacity across 12 major markets in Asia-Pacific, the UK and Europe.
The company provides colocation and connectivity services, benefiting from rising demand for resource-intensive AI workloads.
KKR said digital infrastructure remained a long-term investment theme, while Singtel said the acquisition aligned with its Singtel28 strategy to scale digital infrastructure as a growth engine and would not affect its credit rating or dividend policy.
ST Telemedia said the transaction reflected a shift in the sector that now requires greater scale and specialised capital for the next phase of growth. The deal is expected to close in the early second half of 2026, subject to regulatory approvals.
Business News Asia
