KKR & Singtel Near S$5B Deal to Buy Major Asian Data‑centre Firm

An investment wave is sweeping across Asia’s digital infrastructure landscape as KKR & Co and Singapore Telecommunications (Singtel) edge closer to acquiring a controlling stake in ST Telemedia Global Data Centres (STT GDC), in a deal that could exceed S$5 billion (about US$3.9 billion).

Deal snapshot and players:

• KKR already holds roughly 14 % of STT GDC, while Singtel owns a bit over 4 %. The remainder is held by ST Telemedia, itself wholly owned by Singapore’s state investor Temasek Holdings.

• The entities are in advanced talks to purchase more than 80 % of STT GDC, which would give them full control.

• The deal’s valuation is pegged at “over S$5 billion” by sources with direct knowledge of the matter.

• Earlier, in June 2024, KKR and Singtel together invested S$1.75 billion (~US$1.3 billion) in STT GDC via a consortium, marking one of Southeast Asia’s biggest digital‑infrastructure moves that year.

Why this deal matters:

• STT GDC operates more than 100 data centres across 20+ major markets, spanning Asia (India, Japan, Singapore, South Korea) and Europe (UK, Germany, Italy).

• The rising demand for artificial‑intelligence‑driven infrastructure, cloud services, and colocation facilities is fueling a data‑centre boom in Asia—STT GDC is well positioned to ride that wave.

• For KKR and Singtel, gaining full control would mean owning one of the region’s most scalable digital‑infrastructure platforms, rather than remaining minority stakeholders.

Context & possible implications:

• A deal of this magnitude would count among the largest data‑centre transactions in Asia to date, reflecting shifting investment priorities toward digital backbone assets.

• For Singtel, the move deepens its exposure into infrastructure beyond telecommunications, aligning with diversification into cloud and data‑services markets.

• For KKR, the acquisition aligns with an infrastructure strategy that bets on long‑term assets with recurring revenue and growth driven by data demand.

• The deal is still subject to final terms and possible regulatory approvals; sources note that although talks are advanced, timelines might shift or talks could falter.

Key numbers at a glance:

• Deal size: Over S$5 billion (~US$3.9 billion) for >80 % stake.

• Existing KKR stake: ~14 %.

• Existing Singtel stake: >4 %.

• Prior 2024 investment by KKR‑Singtel: S$1.75 billion.

In short, this potential takeover of STT GDC by KKR and Singtel represents a bold bet on Asia’s digital future. As data‑centre capacity becomes ever more critical for AI, cloud and enterprise services, control of a major regional platform could become a strategic differentiator. While the figures are striking, watch for how integration, regulation and competition shape the outcome.