KKR and Singtel acquire STT GDC for S$6.6bn in largest APAC data‑centre bet
- KKR and Singtel agreed to buy the remaining 82% of STT GDC for S$6.6 billion.
- KKR values STT GDC’s enterprise value at S$13.8 billion and will hold a 75% stake post-conversion.
- KKR calls this its largest Asia‑Pacific infrastructure investment, driven by demand for energy‑intensive cloud and AI capacity.
KKR makes largest Asia-Pacific infrastructure bet on data centres
KKR and Singapore Telecommunications (Singtel) are acquiring the remaining 82% stake in ST Telemedia Global Data Centres (STT GDC) for S$6.6 billion, a transaction KKR says values STT GDC’s enterprise value at S$13.8 billion. Following completion and the conversion of existing preference shares, KKR will hold a 75% stake and Singtel 25%. KKR describes the move as its largest infrastructure investment in the Asia-Pacific to date, driven by a surge in demand for capacity to support energy‑intensive cloud and artificial intelligence workloads.
STT GDC, founded in 2014 and headquartered in Singapore, operates data centres across 12 markets in Asia-Pacific, the United Kingdom and Europe and offers colocation, connectivity and support services to hyperscalers and enterprise customers. The platform features 2.3 gigawatts of design capacity and a substantial development pipeline, assets KKR cites as underpinning its interest as operators race to build scalable, energy-capable campuses. KKR partner David Luboff says digital infrastructure remains “one of the most compelling long‑term investment themes globally,” pointing to the business’s diversified footprint.
The deal underscores strategic priorities in the sector as customers demand larger, more energy-resilient campuses and operators seek to convert pipelines into operating megawatts. Singtel group CFO Arthur Lang says the transaction expands the company’s geographic reach and strengthens Singtel Group as a global data‑centre player. Market participants expect regulatory approvals and integration timelines to shape near‑term outcomes and could prompt further consolidation as competitors position to serve hyperscalers and enterprises.
Record flows underline investor appetite
The acquisition comes amid record dealmaking for digital infrastructure: S&P Global reports more than $61 billion flowed into the data‑centre market last year, signalling strong investor appetite for physical systems that underpin cloud and AI growth. That macro backdrop is prompting larger players and private capital to pursue scale and development pipelines.
Energy, supply chain and regulatory risks remain focal
Industry watchers flag energy capacity, grid connection lead times and supply‑chain constraints as material execution risks for rapid expansion, alongside the need for approvals across multiple jurisdictions. The transaction heightens attention on how owners will meet sustainability and power requirements while integrating cross‑border operations.
