Singtel Group and global private equity firm KKR are set to take majority control of ST Telemedia Global Data Centres (STT GDC) through a S$6.6 billion (US$5.1 billion) acquisition. This represents an implied enterprise value of approximately S$13.8 billion (US$10.9 billion), including leverage and capital expenditure for committed projects.
The consortium will purchase the remaining 82 percent stake from founding shareholder ST Telemedia, completing a transaction that will see KKR hold 75 percent ownership and Singtel 25 percent, after converting existing preference shares.
The acquisition builds on the consortium’s earlier S$1.75 billion investment in 2024, with accelerating demand for cloud computing, artificial intelligence workloads and hyperscale capacity across global markets.
Headquartered in Singapore, STT GDC now operates across 12 key markets spanning Asia Pacific, the UK and Europe, with approximately 2.3GW of design capacity and a development pipeline that has grown from 1.4GW in 2024 to more than 1.7GW.
KKR said this move marks one of Southeast Asia’s largest digital infrastructure buyouts to date.
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 cloud computing and data-rich applications continue to reshape how data is created, stored and processed.”
“This transaction gives us a rare opportunity to deepen our partnership with Singtel and support the company’s next phase of sustainable international growth,” he added.
DBS analyst Sachin Mittal noted in a November research report KKR is trying to bring together renewable electricity power players and key DC players to address power shortage issues.
He added that Singtel has been actively pursuing both organic expansion and acquisitions to grow its data centre portfolio and that discussions around a potential transaction involving STT GDC were already underway at the time.
“Singtel is also testing the technology to transform existing data centres into AI data centres with high power density and liquid cooling,” Mittal said.
For Singtel, this transaction adds to its existing data centre business, Nxera, which has three facilities in Singapore and one each in Malaysia, Indonesia and Thailand.
Arthur Lang, Group Chief Financial Officer of Singtel, described the acquisition as a cornerstone of the company’s Singtel28 roadmap. He added that the enlarged portfolio including Nxera would create greater opportunities for capital optimisation while supporting long-term growth.
The deal is expected to close in the early second half of 2026, subject to regulatory approvals and customary conditions.
