KKR-Led Consortium with Singtel to Take Control of STT GDC in USD 10.9bn Data Centre Deal

A consortium led by U.S. private equity heavyweight KKR, together with Singapore Telecommunications Ltd (Singtel), has agreed to acquire an approximately 82% stake in ST Telemedia Global Data Centres (STT GDC) from ST Telemedia, a Temasek‑owned company, in a landmark transaction highlighting the rapidly rising value of digital infrastructure across Asia.

The transaction values STT GDC at an enterprise value of SGD 13.8bn (USD 10.9bn), with SGD 6.6bn of equity paid for the acquired stake. Upon completion, KKR will hold a controlling 75% interest, while Singtel will own the remaining 25%. The acquisition builds on the consortium’s initial investment in 2024, when KKR and Singtel committed SGD 1.75bn (around USD 1.3bn) to STT GDC via preference shares and warrants – at the time the largest digital infrastructure investment ever made in Southeast Asia.

Founded in 2014, STT GDC has rapidly emerged as one of the world’s leading data centre operators, with a presence spanning Asia‑Pacific and the UK, and a total design capacity of approximately 2.3 GW. Its portfolio of colocation, connectivity and cloud infrastructure services positions the platform at the centre of accelerating demand from hyperscalers and large enterprises, driven by the continued expansion of cloud computing and artificial intelligence.

For KKR, the transaction represents its largest infrastructure investment in Asia‑Pacific to date, underlining strong conviction in the long‑term growth and resilience of data centres as an asset class. The sector benefits from highly visible, recurring revenues and powerful structural tailwinds linked to exponential growth in data processing and storage requirements.

For Singtel, the deal marks a major milestone in its Singtel28 strategy, which aims to reposition the group toward higher‑growth digital infrastructure businesses. By combining STT GDC with its existing platform, Nxera, Singtel significantly expands its geographic footprint and operating scale, strengthening its ability to serve global cloud providers and capture the next wave of AI‑driven demand. Structuring the investment as an associate also enables Singtel to participate in future upside while managing balance‑sheet exposure.

The transaction comes amid an intensifying global race for data centre assets, as investors seek exposure to the infrastructure underpinning AI and cloud ecosystems. A series of recent mega‑deals, including Blackstone’s acquisition of AirTrunk and investments in BlackRock‑backed hyperscale platforms, underscores growing competition for these capital‑intensive, high‑growth assets, with STT GDC standing out as one of the most strategically significant platforms in the region.

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