#Singapore #KKR #Singtel #STT GDC

KKR and Singtel's Historic Acquisition of ST Telemedia Global Data Centres

On February 4, 2026, news broke from Singapore regarding a significant deal in the digital infrastructure space. KKR, an international investment firm, has joined forces with Singapore Telecommunications Limited (Singtel) and ST Telemedia to acquire ST Telemedia Global Data Centres (STT GDC). The consortium announced they reached a definitive agreement to purchase the remaining 82% stake held by ST Telemedia for a total of 6.6 billion Singapore dollars (approximately 5.1 billion US dollars). The estimated enterprise value of this transaction stands at around 13.8 billion Singapore dollars (approximately 10.9 billion US dollars).

Once the deal is finalized, KKR will own 75% and Singtel will hold 25%, adjusted for the conversion of existing preferred shares. This partnership marks a notable moment for both firms, enhancing their positions in a rapidly expanding market.

In 2024, the consortium made a landmark investment of 1.75 billion Singapore dollars (about 1.3 billion US dollars) into STT GDC, noted as Southeast Asia's largest digital infrastructure investment at the time. Following this, STT GDC's development pipeline has experienced growth, projected to expand from 1.4 GW in 2024 to over 1.7 GW.

Founded by ST Telemedia in 2014 and headquartered in Singapore, STT GDC has emerged as one of the fastest-growing and most diversified data center platforms globally. The firm operates in 12 markets across the Asia-Pacific, the UK, and Europe, boasting a total design capacity of 2.3 GW. With offerings like high-quality colocation, connectivity services, and 24/7 support, STT GDC has positioned itself as a critical provider of essential data center services. The rapid acceleration of demand for AI and cloud services has significantly increased the need for data centers that can support these advanced workloads.

Key Stakeholder Insights

David La Bouchard, KKR's Co-Head for Asia Pacific
La Bouchard remarked on the evolution of cloud computing and data-centric applications, stating that digital infrastructure represents a highly attractive long-term investment theme. He emphasized that STT GDC, with its diverse locations, robust development pipeline, and a clear vision for global expansion, holds a significant position in this sector. This acquisition represents a prime opportunity to support the company's growth and deepen its strategic partnership with Singtel.

Arthur Lang, Group CFO of Singtel
Lang highlighted that this acquisition plays a vital role in Singtel’s growth agenda, termed 'Singtel28', focusing on expanding their digital infrastructure business. The expansive reach of STT GDC allows Singtel to tap into new market opportunities while strengthening its presence as a global data center player. Combined with their other assets, including Nxera, this move aims to enhance capital efficiency and flout growth opportunities, transforming Singtel's business structure.

Stephen Miller, Group CEO of ST Telemedia
Miller pointed to the establishment of STT GDC twelve years ago and its evolution into a leading data center platform in the Asia-Pacific region. He indicated that with the market's rapid expansion, the next phase would need larger and more specialized capital. This deal signifies the strategic role ST Telemedia plays in the marketplace and ensures that STT GDC has the optimal environment for sustained growth moving forward.

Bruno Lopes, Group CEO of STT GDC
Lopes described this announcement as a thrilling milestone towards the company's next growth phase. He underlined that the new investments from KKR and Singtel showcased strong confidence in the quality of STT GDC's operations and growth trajectory, aiding in capturing the next wave of cloud and AI demand.

Transaction Completion Timeline and Background

The completion of this transaction is anticipated to take place by the latter half of 2026, subject to customary closing conditions, including regulatory approvals.

Overview of the Consortium

KKR is executing this investment primarily through its Asia Pacific infrastructure strategy. Notable investments from KKR in this region and globally within the digital infrastructure sphere also include Nxera, Pinnacle Towers, OMS Group, and CyrusOne. Singtel stands as a key provider for connectivity, digital services, and digital infrastructure, with data centers being central to its operations. In 2023, KKR acquired a 20% stake in Nxera, which is projected to see its operational capacity increase from over 200 MW in 2026 to over 400 MW in the medium term.

Overall, this acquisition stands out as a major thrust towards fortifying the digital landscape in Southeast Asia and likely sets the stage for considerable growth in the data center domain.