Global investment firm KKR and Singapore telecom giant Singtel have moved to strengthen their control over ST Telemedia Global Data Centres (STT GDC) through a major acquisition deal. The transaction values the company at an enterprise value of approximately S$13.8 billion, making it one of the largest digital infrastructure deals in the Asia-Pacific region.
The deal comes at a time when demand for cloud services, artificial intelligence, and digital data storage is growing rapidly across the world.
What Is the Deal About?
Under the agreement, KKR and Singtel are acquiring the remaining stake in STT GDC previously held by ST Telemedia, giving the two companies stronger ownership and operational control over the data centre operator.
The stake being purchased is valued at around S$6–7 billion, while the total enterprise valuation of the company stands at S$13.8 billion.
The transaction is expected to close in the first half of 2026, subject to regulatory approvals.
Ownership Structure After the Deal
Once the deal is completed:
- KKR will hold approximately 75% ownership
- Singtel will own around 25%
- ST Telemedia will largely exit its stake in the company
This restructuring gives KKR and Singtel greater influence over the company’s expansion and future strategy.
What Does STT GDC Do?
ST Telemedia Global Data Centres is a global data centre operator that provides infrastructure services such as:
- Data storage facilities
- Cloud infrastructure support
- Network connectivity
- Enterprise data solutions
The company operates across Asia, Europe, and other major markets, serving cloud companies, technology firms, and enterprise customers. As digital usage expands globally, data centres are becoming critical infrastructure for modern economies.
Why Is KKR Investing Heavily in This Sector?
KKR has been increasing investments in digital infrastructure worldwide. The firm believes:
- Future economies will rely heavily on data,
- AI and cloud services will continue to expand,
- Demand for data centres will grow significantly.
This acquisition aligns with KKR’s long-term investment strategy in technology infrastructure.
Benefits for Singtel
For Singtel, increasing exposure to STT GDC helps the company:
- Expand beyond telecom services,
- Strengthen its position in cloud and digital infrastructure,
- Participate in long-term growth of data-driven services.
Why Is Demand for Data Centres Rising in Asia?
Experts note that Asia-Pacific markets are seeing rapid growth due to:
- Increasing internet and smartphone usage,
- Expansion of digital services,
- Corporate migration to cloud platforms,
- Growth in AI and digital applications.
Countries like India, Singapore, Indonesia, and Japan are becoming major hubs for data centre investments.
Industry Impact
The acquisition is expected to:
- Intensify competition in the data centre market,
- Encourage further investments in digital infrastructure,
- Trigger more consolidation and acquisitions in the sector.
The deal signals rising investor confidence in digital infrastructure globally.
What Does This Mean for Investors?
The transaction highlights that global investors increasingly see digital infrastructure and data centres as long-term growth sectors. Expansion of AI, cloud computing, and digital services is expected to support strong future demand.
Outcome
KKR and Singtel’s acquisition in STT GDC represents more than a corporate deal—it reflects a strategic bet on the future digital economy. With an enterprise valuation of S$13.8 billion, STT GDC is positioned to play a crucial role in supporting the growing global need for data and digital services.
As digital transformation accelerates worldwide, further large investments and consolidation in the data centre sector are likely in the coming years.
Source: stt news
