Global investment firm KKR, Singapore-based communications technology group Singtel and ST Telemedia have signed definitive agreements under which funds managed by a KKR and Singtel consortium will acquire the remaining 82% stake in data centre colocation services provider ST Telemedia Global Data Centres ( STT GDC ) from founding shareholder ST Telemedia for a total consideration of S$6.6 billion ( US$5.1 billion ).

This represents an implied enterprise value of approximately S$13.8 billion, including leverage and capital expenditure for committed projects. 

Upon completion, 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 S$1.75 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 company has grown its pipeline from 1.4 gigawatts ( GW ) in 2024 to over 1.7GW. 

Established in 2014 by ST Telemedia and headquartered in Singapore, STT GDC is one of the world’s fastest-growing and most diversified data centre platforms with 2.3GW of design capacity across 12 major markets in Asia-Pacific, the UK and Europe. It provides critical services, including high-quality colocation, connectivity and round-the-clock support services. As demand for artifical intelligence ( AI ) and cloud services continues to accelerate, it is fuelling the need for new data centres to drive resource-intensive workloads.

“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,” says David Luboff, co-head of KKR Asia-Pacific and head of Asia-Pacific infrastructure at KKR. “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.

“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.”

Arthur Lang, Singtel group CFO, adds: “This acquisition is a significant step towards scaling our new growth engine in digital infrastructure as mapped out in our Singtel28 growth plan. STT GDC’s diverse geographical footprint increases our exposure to new markets and makes the Singtel a stronger data centre player with global reach.”