Global investment firm KKR, Asia’s leading communications technology group Singtel, and ST Telemedia have signed definitive agreements under which funds managed by KKR and Singtel will acquire the remaining 82 percent stake in ST Telemedia Global Data Centres (STT GDC) from founding shareholder ST Telemedia for a total consideration of S$6.6 billion, or about US$5.1 billion.
The transaction implies an enterprise value of approximately S$13.8 billion, or around US$10.9 billion, including leverage and capital expenditure for committed projects. Upon completion, KKR and Singtel will own 75 percent and 25 percent stakes respectively in STT GDC, after taking into account the conversion of existing redeemable preference shares held by both investors.
The consortium first invested S$1.75 billion in STT GDC in 2024 through preference shares and warrants, marking the largest digital infrastructure investment in Southeast Asia that year. Since that investment, STT GDC has expanded its development pipeline from 1.4 gigawatts in 2024 to more than 1.7 gigawatts.
Founded in 2014 by ST Telemedia and headquartered in Singapore, STT GDC has emerged as one of the world’s fastest-growing and most diversified data centre colocation platforms. The company now has 2.3 gigawatts of design capacity across 12 major markets spanning Asia Pacific, the United Kingdom, and Europe. Its portfolio supports high-quality colocation, connectivity, and round-the-clock operations, addressing rising demand from cloud computing and artificial intelligence 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 data-intensive applications continue to reshape how information is created, stored, and processed. He noted that STT GDC’s diversified footprint, strong development pipeline, and experienced leadership team position it well for global scale and sustainable growth.
Arthur Lang, Group Chief Financial Officer of Singtel, said the acquisition aligns with the Singtel28 growth plan and strengthens the group’s position in digital infrastructure. He added that STT GDC’s global footprint enhances Singtel’s exposure to new markets and complements its existing data centre assets, including Nxera, in which KKR is also a capital partner. Singtel confirmed that the transaction is not expected to impact its credit rating or dividend policy.
Stephen Miller, President and Group CEO of ST Telemedia, said the company is proud of the value created at STT GDC over the past 12 years. He explained that the next phase of growth requires a different scale of capital and specialised focus, making KKR and Singtel the right partners to support STT GDC’s continued expansion in a rapidly evolving data centre market.
Bruno Lopez, President and Group CEO of STT GDC, said the transaction marks a new chapter for the company, building on strong foundations established since its inception. He said the expanded investment reflects confidence in STT GDC’s growth trajectory and will accelerate its mission to deliver critical infrastructure for the digital economy, particularly as demand for cloud and AI services continues to rise.
The transaction is expected to close by early second half of 2026, subject to customary closing conditions, including regulatory approvals.
KKR is making the investment primarily through its Asia Pacific infrastructure strategy. The firm has an established track record in digital infrastructure across Southeast Asia and globally, with investments including Nxera, Pinnacle Towers, OMS Group, CyrusOne, and Global Technical Realty. KKR’s Asia Pacific infrastructure platform has grown to about US$16 billion in assets under management since its launch in 2019, as of September 30, 2025.
Singtel Group continues to scale its digital infrastructure portfolio, with data centres playing a central role. Nxera’s operational capacity in Southeast Asia is expected to more than double from over 200 megawatts in 2026 to more than 400 megawatts in the mid-term, supported by Singtel’s extensive fibre and subsea cable networks and its Digital InfraCo unit.
RAJANI BABURAJAN
