KKR, Singtel Seal $5.1 Billion Deal for Full Control of Data Center Giant STT GDC

In a landmark transaction for the digital infrastructure sector, private equity titan KKR and Singapore Telecommunications (Singtel) will assume full ownership of ST Telemedia Global Data Centres (STT GDC). The partners agreed to acquire the remaining 82% stake they did not already own for S$6.6 billion (US$5.1 billion), valuing the entire company at S$13.8 billion.

The move, announced Wednesday, underscores the intense investor appetite for data center assets, fueled by the global expansion of cloud services and, more recently, the computational demands of artificial intelligence. Upon closing, KKR will control 75% of STT GDC, with Singtel holding 25%.

For KKR, this represents its most significant infrastructure investment across Asia Pacific to date. Singtel’s shares touched a record high following the news. The transaction is the largest merger and acquisition deal in Singapore in four years, according to Citi data.

“Digital infrastructure stands as one of the strongest long-term investment themes worldwide,” said David Luboff, Co-Head of KKR Asia Pacific. He highlighted STT GDC’s broad operational footprint and expansion plans.

Founded in 2014, STT GDC runs data centers in 12 markets, including key locations in Asia Pacific, the UK, and Europe, with a design capacity of 2.3 gigawatts. It serves major cloud providers and corporate clients. KKR and Singtel first invested S$1.75 billion for a minority stake in June 2024.

Singtel’s Group CFO, Arthur Lang, stated the acquisition significantly boosts the group’s position, calling it “a stronger data centre player with global reach.” Advisors on the deal included Citi, Bank of America, and J.P. Morgan.

Source: CNBC