KKR and SingTel to Invest $1.3 bn in ST Telemedia Global Data Centres

A consortium formed by U.S. investment firm KKR and Singapore Telecommunications will invest S$1.75 billion ($1.3 billion) in ST Telemedia Global Data Centres (STT GDC), one of Asia’s leading data centre providers.

ST Telemedia

ST Telemedia, a strategic investor owned by Singapore’s global investment company Temasek, will remain the majority shareholder in STT GDC. The investment will give the KKR-SingTel consortium an 18.3 percent minority stake in STT GDC.

Bruno Lopez, President and Group CEO of STT GDC, said: “With the industry experiencing 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.”

The S$1.75 billion investment from the consortium will be made via redeemable preference shares with detachable warrants. Upon full exercise of these warrants, the consortium will contribute an additional S$1.24 billion.

The proceeds from this investment will be used to strengthen STT GDC’s market position and support its ongoing international expansion through both organic and inorganic growth strategies. Founded in 2014 and headquartered in Singapore, STT GDC operates over 95 data centres across 11 geographies, boasting a combined IT load capacity of more than 1.7 gigawatts.

KKR is making this investment through its Asia Pacific Infrastructure Investors II Fund. Earlier this month, during the Indo-Pacific Partnership for Prosperity event, KKR announced plans to invest significantly in infrastructure within the Indo-Pacific region. This latest investment builds on KKR’s collaboration with SingTel, which saw KKR acquire a 20 percent stake in SingTel’s regional data centre business Nxera for S$1.1 billion in September last year.

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