KKR, Singtel acquire additional stakes at ST Telemedia Global Data Centres for $5.18 bln

A consortium of global investment firm KKR and Singtel Group has entirely acquired ST Telemedia Global Data Centres (STT GDC), one of the world’s fastest-growing and most diversified data center platforms.

The deal marks one of the largest digital infrastructure transactions in Southeast Asia and lays a strong foundation for STT GDC to accelerate its expansion across existing markets, including Vietnam, STT GDC said in a release on Wednesday.

KKR, Singtel - Asia’s leading communications technology group, and ST Telemedia signed definitive agreements under which funds managed by KKR and Singtel (the consortium) will acquire the remaining 82% stake in STT GDC from founding shareholder ST Telemedia for a total consideration of S$6.6 billion (approximately US$5.18 billion).

Upon completion, KKR and Singtel will own stakes of 75% and 25%, respectively in STT GDC, taking into account the conversion of existing redeemable preference shares that both KKR and Singtel hold in the company.

The consortium first invested approximately $1.3 billion in STT GDC through preference shares and warrants in what marked the largest digital infrastructure investment in Southeast Asia in 2024. Since then, STT GDC has grown its pipeline from 1.4 GW in 2024 to over 1.7 GW.

The transaction is expected to close by early second half of 2026, subject to customary closing conditions, including regulatory approvals. This represents an implied enterprise value of approximately S$13.8 billion (approximately US$10.9 billion), including leverage and capital expenditure for committed projects.

Established in 2014 by ST Telemedia and headquartered in Singapore, STT GDC is one of the world’s fastest-growing and most diversified data center platforms with 2.3 GW of design capacity across 12 major markets in Asia Pacific and the UK and Europe.

David Luboff, co-head of KKR Asia Pacific and head of Asia Pacific Infrastructure at KKR, noted that 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.

"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. This transaction represents a rare opportunity to further support a high-quality platform and deepen our strategic partnership with Singtel," he added.

Bruno Lopez, president & Group CEO of STT GDC, said, "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."

STT GDC provides critical services including high-quality colocation, connectivity and round-the-clock support services. As demand for AI and cloud services continues to accelerate, it is fuelling the need for new data centers to drive resource-intensive workloads.

In Vietnam, STT GDC operates data centers through a strategic partnership with VNG. The partnership covers the operation of STT VNG Ho Chi Minh City 1 (formerly VNG Data Center in the Tan Thuan Export Processing Zone) and the development of STT VNG Ho Chi Minh City 2, a new data center with a total IT load of over 69 MW.

The acquisition will not affect STT GDC’s business operations, customer service commitments, or workforce across its markets, including Vietnam. On the contrary, access to stronger financial resources, international operational experience, and the technical expertise of its joint venture partners will further enhance STT GDC’s competitive strengths.

Established in 2014 by ST Telemedia and headquartered in Singapore, ST Telemedia Global Data Centres (STT GDC) is one of the fastest-growing data center providers with a global platform serving as a cornerstone of the digital ecosystem that helps the world to connect. The company operates across Singapore, the UK, Germany, Italy, India, Thailand, South Korea, Indonesia, Japan, the Philippines, Malaysia and Vietnam.

KKR is a U.S.-based global investment firm and one of the largest private equity funds in the world. KKR is making this investment predominantly from its Asia Pacific infrastructure strategy. This marks KKR’s latest digital infrastructure investment in Southeast Asia and globally.

KKR’s Asia Pacific infrastructure platform has grown to approximately $16 billion in assets under management since it was established in 2019, as of September 30, 2025. Past investments in this region have included Nxera (Singapore), Pinnacle Towers (Philippines), OMS Group, a neutral subsea telecommunications cable services provider, and globally included CyrusOne and Global Technical Realty.

Singtel Group is a Singapore-based leading provider of connectivity, digital services and digital infrastructure, with data centers a critical part of the business. KKR has acquired a 20% stake in Nxera. The operational capacity of Nxera’s data centers is expected to more than double from over 200 MW in 2026 to over 400 MW in the mid-term.

These data centers, together with the group’s extensive regional terrestrial fibre network, subsea cable network, Paragon platform and RE:AI, form the core portfolio of its Digital InfraCo unit. This transaction is not expected to have an impact on Singtel's credit rating and dividend policy.