A KKR-led consortium with Singtel Group has agreed to fully acquire ST Telemedia Global Data Centres (STT GDC) in a deal valuing the data centre operator at S$13.8 billion, marking one of the largest digital infrastructure transactions in Southeast Asia.

Under the agreement, funds managed by KKR and Singtel Group will buy the remaining 82 per cent stake in STT GDC from founding shareholder ST Telemedia for S$6.6 billion. The transaction implies an enterprise value of about S$13.8 billion, including leverage and committed capital expenditure. 

Upon completion, KKR will hold 75 per cent of STT GDC, with Singtel owning the remaining 25 per cent, after the conversion of existing redeemable preference shares held by both parties.

Expanding Data Centre Scale Amid AI Demand

Founded in 2014 and headquartered in Singapore, ST Telemedia Global Data Centres operates one of the world’s fastest-growing data centre platforms, with 2.3 gigawatts (GW) of design capacity across 12 markets in Asia Pacific as well as the United Kingdom and Europe.

The company has expanded its development pipeline from 1.4GW in 2024 to more than 1.7GW, supported by rising demand for cloud computing and artificial intelligence (AI) workloads, which require energy-intensive digital infrastructure.

“Digital infrastructure remains one of the most compelling long-term investment themes globally,” said David Luboff, Co-Head of Asia Pacific at KKR, citing STT GDC’s diversified footprint and development pipeline.

Strategic Fit for Singtel’s Digital InfraCo Plans

For Singtel, the acquisition strengthens its push into digital infrastructure under its Singtel28 growth strategy, positioning data centres as a core engine of future growth.

Arthur Lang, Singtel’s Group Chief Financial Officer, said the transaction would “meaningfully change the business complexion of the Group”, adding that the deal is not expected to affect Singtel’s credit rating or dividend policy.

STT GDC complements Singtel’s existing regional data centre portfolio, including Nxera, in which KKR acquired a minority stake in 2023.

ST Telemedia Exits After 12 Years

ST Telemedia, which established STT GDC in 2014, said the business has reached a scale that now requires deeper pools of capital and specialised focus to support its next growth phase.

Stephen Miller, President and Group Chief Executive of ST Telemedia, said the transaction reflects the company’s long-term stewardship while ensuring STT GDC’s continued expansion with “an optimal partner”.