KKR and Singtel Group, together with ST Telemedia, announced they have signed definitive agreements for a consortium led by funds managed by KKR and Singtel to acquire the remaining 82% stake in ST Telemedia Global Data Centres (STT GDC) from founding shareholder ST Telemedia for S$6.6 billion, valuing the business at an implied enterprise value of about S$13.8 billion including leverage and capital expenditure for committed projects.
Following completion, KKR and Singtel will hold 75% and 25% stakes, respectively, after accounting for the conversion of existing redeemable preference shares held by both investors. The companies said the transaction is expected to close by the early second half of 2026, subject to customary closing conditions and regulatory approvals.
The consortium first invested S$1.75 billion in STT GDC in 2024 through preference shares and warrants, which the parties described as the largest digital infrastructure investment in Southeast Asia that year. Since that initial investment, STT GDC has expanded its pipeline from 1.4 GW in 2024 to more than 1.7 GW, according to the announcement.
Founded in 2014 and headquartered in Singapore, STT GDC operates a global data center colocation platform with 2.3 GW of design capacity across 12 major markets in Asia-Pacific, the United Kingdom, and Europe. The company provides colocation, connectivity, and round-the-clock support services, and it is positioned to benefit from rising demand tied to AI and cloud workloads, the companies said.
KKR said it is making the investment predominantly through its Asia-Pacific infrastructure strategy and framed the deal as part of its broader push into digital infrastructure. Singtel said the acquisition aligns with its Singtel28 growth plan, expands its exposure to new markets, and supports capital optimization and balance sheet efficiency through potential capital recycling alternatives.
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“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. STT GDC is well-positioned within this landscape, with a diversified footprint, strong development pipeline and a leadership team with a clear vision for global scale. This transaction represents a rare opportunity to further support a high-quality platform and deepen our strategic partnership with Singtel. We look forward to deploying KKR’s global network and deep digital infrastructure expertise to help STT GDC accelerate its next phase of sustainable, international growth.”
David Luboff, Co-Head of KKR Asia Pacific and Head of Asia Pacific Infrastructure at KKR
“This acquisition is a significant step towards scaling our new growth engine in digital infrastructure as mapped out in our Singtel28 growth plan. STT GDC’s diverse geographical footprint increases our exposure to new markets and makes the Singtel Group a stronger data centre player with global reach. We appreciate ST Telemedia’s stewardship of the company and are confident that its seasoned leadership team will continue to scale the solid platform they have built. When added to our portfolio of data centre assets that includes Nxera in which KKR is also a capital partner, it meaningfully changes the business complexion of the Group while creating new opportunities for capital optimisation and growth. We will continue to exercise discipline in capital allocation and evaluate capital recycling alternatives to fund growth and maintain balance-sheet efficiency. Our dividend and growth plans under Singtel28 remain intact.”
Arthur Lang, Group Chief Financial Officer of Singtel
“ST Telemedia established STT GDC 12 years ago to pioneer one of Asia Pacific’s leading data centre platforms, combined with an equally strong position in the United Kingdom and Europe through VIRTUS. We are proud of STT GDC’s market leadership and the exceptional value creation achieved by the team over that period. As the data centre sector has fundamentally shifted, its exponential trajectory now requires a different scale of capital and specialised focus for STT GDC’s next exciting phase of continued growth. As a long-term, strategic shareholder, we have steadfastly supported STT GDC’s development and transformation. This transaction demonstrates our strategic stewardship while ensuring STT GDC’s ongoing sustainable growth with an optimal partner. Finally, we extend our deep gratitude to the STT GDC management and staff for their outstanding execution and dedication over the past 12 years.”
Stephen Miller, President & Group CEO of ST Telemedia
“Today’s announcement marks an exciting new chapter in STT GDC’s journey, building on the strong foundations established over the past 12 years. We appreciate the pivotal role of ST Telemedia in nurturing and guiding the business to the breadth and scale it is today. This expanded investment from KKR and Singtel underscores their confidence in the quality of STT GDC’s business and its growth trajectory and will further accelerate our mission to deliver the critical infrastructure powering tomorrow’s digital economy. With the consortium’s global expertise, regional networks, financial strength and, most importantly, our shared ambition, STT GDC is poised to scale rapidly and capture the next wave of significant growth in cloud and AI demand. Coupled with our proven leadership and exceptional teams across all markets, STT GDC is well-positioned to shape the future of sustainable digital infrastructure and continue delivering value to our customers, partners and employees.”
Bruno Lopez, President & Group CEO of STT GDC
