Investment firm KKR and communications group Singtel are acquiring the 82% stake in ST Telemedia Global Data Centres (STT GDC) they do not already own for S$6.6bn (€4.4bn).
KKR will hold a 75% stake in STT GDC, with Singtel retaining the remaining 25% interest once the consortium completes the acquisition of the additional interest from founding shareholder ST Telemedia.
The deal values STT GDC at an enterprise value of approximately S$13.8bn, a figure that accounts for leverage and capital expenditure for committed projects.
In 2024, the consortium comprising KKR and Singtel made its initial investment in STT GDC with a S$1.75bn investment. The deal was structured through redeemable preference shares and detachable warrants, with KKR deploying capital from its Asia Pacific Infrastructure Investors II fund.
Headquartered in Singapore, STT GDC has a diversified data centre platform with 2.3GW of design capacity across 12 major markets in Asia Pacific and Europe.
David Luboff, co-head of KKR Asia Pacific and head of Asia Pacific infrastructure at KKR, said: “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.”
Arthur Lang, group CFO of Singtel, said: “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.”
Stephen Miller, president & group CEO of ST Telemedia, said: “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 UK 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.”
Bruno Lopez, president & group CEO of STT GDC, said: “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.”
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