Global investment firm KKR, communications technology group Singtel, and ST Telemedia have signed definitive agreements under which funds managed by KKR and Singtel will acquire the remaining 82% stake in ST Telemedia Global Data Centres (STT GDC) from founding shareholder ST Telemedia for a total consideration of SG$6.6 billion (about US$5.1 billion).
This represents an implied enterprise value of approximately SG$13.8 billion (US$10.9 billion), including leverage and capital expenditure for committed projects.
Upon completion, the consortium of KKR and Singtel will own stakes of 75% and 25% respectively in STT GDC, taking into account the conversion of existing redeemable preference shares that both KKR and Singtel hold in the company.
The consortium first invested SG$1.75 billion (US$1.3 billion) in STT GDC through preference shares and warrants in what marked the largest digital infrastructure investment in Southeast Asia in 2024. Since then, the STT GDC has grown its pipeline from 1.4GW in 2024 to over 1.7GW.
Established in 2014 by ST Telemedia and headquartered in Singapore, STT GDC is a diversified data centre platforms with 2.3GW of design capacity across 12 major markets in the Asia-Pacific region and United Kingdom and Europe.
The company provides critical services including high-quality colocation, connectivity and round-the-clock support services. As demand for AI and cloud services continues to accelerate, it is fuelling the need for new data centres to drive resource-intensive workloads.
David Luboff, co-head of KKR Asia Pacific and head of Asia Pacific Infrastructure at KKR, said 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.
“STT GDC is well-positioned within this landscape, with a diversified footprint, strong development pipeline and a leadership team with a clear vision for global scale,” said Luboff.
He said the transaction represents a rare opportunity to deepen their strategic partnership with Singtel.”
“This acquisition is a significant step towards scaling our new growth engine in digital infrastructure as mapped out in our Singtel28 growth plan,” said Arthur Lang, group CFO of Singtel. “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.”
“When added to our portfolio of data centre assets that includes Nxera in which KKR is also a capital partner, it meaningfully changes the business complexion of the group while creating new opportunities for capital optimisation and growth,” said Lang. “We will continue to exercise discipline in capital allocation and evaluate capital recycling alternatives to fund growth and maintain balance‑sheet efficiency. Our dividend and growth plans under Singtel28 remain intact.”
Stephen Miller, president and group CEO of ST Telemedia, said that 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 phase of continued growth.
“With the consortium’s global expertise, regional networks, financial strength and, most importantly, our shared ambition, STT GDC is poised to scale rapidly and capture the next wave of significant growth in cloud and AI demand,” said Bruno Lopez, president and group CEO of STT GDC.
The transaction is expected to close by early second half of 2026, subject to customary closing conditions, including regulatory approvals.
