KKR and Singtel Announce $5 Billion Deal to Fully Acquire STT GDC

KKR and Singtel to Acquire ST Telemedia Global Data Centres in a S$6.6 Billion Deal

Private equity powerhouse KKR, in a significant move alongside Singapore Telecommunications (Singtel), is set to acquire the remaining 82% stake in data center operator ST Telemedia Global Data Centres (STT GDC). The transaction is valued at S$6.6 billion (approximately $5.1 billion), according to a statement released by KKR. This substantial deal values STT GDC at an enterprise value of S$13.8 billion, underscoring the escalating importance of digital infrastructure amidst a surge in demand for data center capacity, largely fueled by the artificial intelligence boom.

Upon completion, KKR is expected to hold a commanding 75% ownership in STT GDC, with Singtel retaining a 25% stake. These stakes are calculated after accounting for the conversion of existing preference shares held by both investors. This acquisition represents KKR’s largest infrastructure investment in the Asia Pacific region to date, mirroring a global trend of accelerated investment in data centers. The escalating need for robust cloud computing infrastructure and the computational demands of artificial intelligence workloads are driving this sustained growth.

The announcement saw Singtel shares initially climb nearly 2% to a new record high, before settling slightly higher. KKR’s stock, which experienced a dip on the previous day, showed a modest gain in after-hours trading.

The global data center market has witnessed unprecedented activity, with dealmaking reaching a new zenith last year. This surge is directly linked to the race to build out the necessary infrastructure to support energy-intensive AI computations. Industry reports indicate that the data center market attracted over $61 billion in investment last year, a figure that closely mirrors the $60.8 billion recorded in the preceding year.

“Digital infrastructure remains one of the most compelling long-term investment themes globally,” commented David Luboff, co-head of KKR Asia Pacific and head of Asia Pacific infrastructure. He highlighted STT GDC’s “diversified footprint and development pipeline” as key strategic assets.

Leading financial institutions have played pivotal roles in facilitating this transaction. Citi and Bank of America served as advisors to KKR and Singtel, while J.P. Morgan acted as the sole financial advisor to ST Telemedia. Data compiled by Citi reveals this deal as the largest mergers and acquisitions transaction in Singapore over the past four years.

Established in 2014 and headquartered in Singapore, STT GDC boasts an extensive operational network across 12 markets in the Asia Pacific, the United Kingdom, and Europe. The company possesses a design capacity of 2.3 gigawatts and offers essential colocation, connectivity, and support services tailored to hyperscale cloud providers and enterprise clients.

This latest acquisition builds upon a prior investment made by KKR and Singtel in STT GDC in June 2024. At that time, the consortium invested S$1.75 billion for a minority stake in the data center operator, signaling their early confidence in the company’s growth trajectory and market position.

“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,” stated Arthur Lang, group chief financial officer at Singtel, emphasizing the strategic expansion of Singtel’s data center capabilities.