STT GDC raises SG$1.75B from KKR-Singtel consortium

ST Telemedia Global Data Centres has entered into definitive agreements under which a KKR-led consortium of KKR and Singtel will invest SG$1.75 billion (about US$1.3 billion) in STT GDC. 

The companies noted that their transaction marks the largest digital infrastructure investment in Southeast Asia so far in 2024.

The transaction comprises an initial US$1.3 billion investment by the consortium via redeemable preference shares (RPS), with detachable warrants. 

When these have been exercised in full, the consortium will invest an additional SG$1.24 billion (about US$920 million).

The proceeds of the investment will be used to further advance STT GDC’s position in the markets it operates in, and to support its continuing international expansion and growth plans through organic and inorganic strategies. 

Following the transaction, ST Telemedia continues to be the majority shareholder of STT GDC. The closing of the transaction is subject to the satisfaction of certain conditions precedent including regulatory approvals.

“With the industry experiencing unprecedented cloud and AI-led growth, this strategic partnership with KKR and Singtel will be a significant catalyst for STT GDC’s next chapter of growth as a leader in the digital infrastructure industry,” said Bruno Lopez, president and Group CEO of STT GDC.

David Luboff, co-head of KKR Asia Pacific, said their investment in STT GDC is a rare opportunity to support the growth of a leading data centre platform with a terrific track record of growth and significant potential, whilst deepening our existing collaboration with Singtel. 

KKR is making this investment from its Asia Pacific Infrastructure Investors II Fund. This follows KKR’s announcement at the Indo-Pacific Partnership for Prosperity to mobilise infrastructure in the Indo-Pacific region, and marks KKR’s latest digital infrastructure investment in Southeast Asia and globally.

“We see digital infrastructure, particularly data centres, as a growth asset and compelling investment with the remarkable rise of the sector driven by rapid digitalisation and AI adoption around the world,” said Arthur Lang, group CFO of Singtel.