KKR, Singtel Buying Out Data Centre Giant STT GDC in $10.9B Deal

Private equity giant KKR and telco Singtel have agreed to buy the remaining 82 percent stake they don’t already own in Singapore’s ST Telemedia Global Data Centres, in a deal valuing the Temasek-controlled digital infrastructure operator at S$13.8 billion ($10.9 billion).

Less than two years after acquiring their minority interest in STT GDC, KKR and Singtel will pay S$6.6 billion for full ownership of the platform, which comprises more than 100 data centres in Asia and Europe with 2.3 gigawatts of design capacity. KKR and Singtel will own respective stakes of 75 percent and 25 percent, taking into account the conversion of existing redeemable preference shares they hold in STT GDC, the companies said Tuesday in a release.

STT GDC’s enterprise value of $10.9 billion includes leverage and capital expenditure for committed projects. Upon completion in the second half of 2026, the buyout will rank as the second-largest M&A deal ever in Asia Pacific, behind only Blackstone and CPPIB’s $16.1 billion takeover of Sydney-based data centre platform AirTrunk in 2024. 

“Digital infrastructure remains one of the most compelling long-term investment themes globally as cloud computing and data-rich applications continue to reshape how data is created, stored and processed,” said David Luboff, KKR’s co-head of Asia Pacific and head of infrastructure in the region. “STT GDC is well-positioned within this landscape, with a diversified footprint, strong development pipeline and a leadership team with a clear vision for global scale.”

AI-Fuelled Demand

STT GDC is controlled by Singapore state-owned investment firm Temasek, which also owns a 51 percent stake in Singtel. KKR and Singtel first teamed up to invest $1.3 billion in STT GDC in June 2024 through preference shares and warrants, with the platform’s project pipeline having grown from 1.4GW at that time to over 1.7GW at present, according to the companies.

“As demand for AI and cloud services continues to accelerate, it is fuelling the need for new data centres to drive resource-intensive workloads,” said Manhattan-based KKR.

The fund management giant is making its latest investment primarily from its Asia Pacific infrastructure strategy, which targets opportunities in data centres, utilities and transport. The transaction values STT GDC at more than $4.7 million per megawatt of committed capacity.

KKR had previously invested in Southeast Asia’s digital infrastructure in 2023, when the firm committed up to S$1.1 billion for a 20 percent stake in Singtel’s Nxera regional data centre arm. The operational capacity of Nxera data centres in Southeast Asia is expected to more than double from over 200MW in 2026 to more than 400MW in the mid-term, KKR said Tuesday.

Founded in 2014 and led by president and CEO Bruno Lopez, STT GDC has a presence in Singapore, India, China, Japan, South Korea, Thailand, Indonesia, Malaysia, the Philippines, Vietnam, Britain, Germany and Italy. The European business is driven by London-based subsidiary Virtus Data Centres, 40 percent owned by Australia’s Macquarie Asset Management.

“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,” Lopez said.

Regional Momentum

STT GDC has been rapidly expanding its APAC data centre footprint, adding capacity across key hyperscale markets.

In February of last year, STT GDC began construction of the first data centre at the firm’s campus in the Malaysian hotspot of Johor state, with the 16-megawatt facility scheduled to be fully operational by the end of 2026.

The groundbreaking came 14 months after STT GDC announced the Johor campus as the firm’s second project in Malaysia, following closely on the launch of a joint venture with local IT service provider Basis Bay to develop a 20MW complex in the Cyberjaya tech hub south of Kuala Lumpur.

STT GDC’s Southeast Asian reach includes Thailand and the Philippines, where it is developing a 124MW campus in Metro Manila with local conglomerate Ayala Corp and Ayala’s telecom unit Globe. The firm entered Indonesia in 2023 with a 72MW campus in West Java.

Last June saw STT GDC launch a Greater Tokyo hyperscale facility into service as its first Japan location, with the campus in the Inzai digital hub expected to support up to 70MW of IT capacity at full buildout.