KKR and Singtel Consortium to Fully Acquire ST Telemedia Global Data Centres for S\$13.8 Billion

Overview

In a landmark transaction that is set to reshape the digital infrastructure landscape in Southeast Asia, global investment firm KKR and Asia’s leading communications technology group Singtel have signed definitive agreements to acquire the remaining 82% stake in ST Telemedia Global Data Centres (STT GDC) from founding shareholder ST Telemedia. The deal values STT GDC at an enterprise value of approximately S\$13.8 billion (US\$10.9 billion), including leverage and capital expenditure for committed projects. The purchase consideration for the stake amounts to S\$6.6 billion (US\$5.1 billion).

Key Transaction Details

• The consortium – comprising KKR and Singtel – will own 75% and 25% of STT GDC, respectively, after conversion of existing redeemable preference shares.
• This transaction follows the consortium’s initial investment of S\$1.75 billion (US\$1.3 billion) in STT GDC in 2024, which was the largest digital infrastructure investment in Southeast Asia at the time.
• STT GDC has expanded its development pipeline from 1.4GW in 2024 to over 1.7GW, with a global design capacity of 2.3GW across 12 major markets in Asia Pacific, the UK, and Europe.
• The transaction is expected to close by early second half of 2026, pending regulatory approvals and customary closing conditions.

Strategic Implications

This acquisition marks one of the largest digital infrastructure deals in Southeast Asia, underscoring the region’s growing importance as a hub for cloud, AI, and data-driven applications. The move is highly strategic for both KKR and Singtel:
KKR: The deal aligns with KKR’s Asia Pacific infrastructure strategy, with its regional platform now managing about US\$16 billion in assets. KKR has a strong track record in digital infrastructure investing, with prior investments in Nxera (Singapore), Pinnacle Towers (Philippines), OMS Group (subsea cable services), CyrusOne (global data centers), and Global Technical Realty (Europe, UK).
Singtel: For Singtel, the acquisition is a key part of its Singtel28 growth plan, aiming to scale its digital infrastructure business. The deal boosts its exposure to new markets and strengthens its position as a global data centre player. Singtel also owns Nxera, in which KKR is a capital partner, and expects operational capacity of Nxera’s data centres to more than double from over 200MW in 2026 to over 400MW in the mid-term.

Singtel has assured investors that the transaction will not impact its credit rating or dividend policy, and its capital allocation discipline and growth plans remain intact.

Comments from Leadership

David Luboff, Co-Head of KKR Asia Pacific: “Digital infrastructure remains one of the most compelling long-term investment themes globally… This transaction represents a rare opportunity to further support a high-quality platform and deepen our strategic partnership with Singtel.”

Arthur Lang, CFO of Singtel: “This acquisition is a significant step towards scaling our new growth engine in digital infrastructure… STT GDC’s diverse geographical footprint increases our exposure to new markets and makes the Singtel Group a stronger data centre player with global reach.”

Stephen Miller, President & Group CEO of ST Telemedia: “As the data centre sector has fundamentally shifted, its exponential trajectory now requires a different scale of capital and specialised focus for STT GDC’s next exciting phase of continued growth.”

Bruno Lopez, President & Group CEO of STT GDC: “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.”

Potential Share Price Impact & Investor Considerations

• Major Capital Deployment: The transaction involves significant capital deployment by both KKR and Singtel, potentially signaling strong growth prospects for both companies and sector consolidation.
• Expansion and Scale: STT GDC’s increasing pipeline and global footprint position it to benefit from surging AI and cloud demand, which may enhance future earnings.
• Dividend and Credit Rating: Singtel has stated the deal will not affect its dividend policy or credit rating, providing stability for shareholders.
• Strategic Shift: For Singtel, the acquisition fundamentally shifts the business mix towards digital infrastructure, potentially unlocking new growth and capital optimization opportunities.
• Regulatory Risk: The deal’s completion is subject to regulatory approvals; any delays or issues could impact timelines and perceived value.
• Sector Leadership: STT GDC is now poised for accelerated growth, which may positively impact valuations of both Singtel and KKR, as well as sector peers.

Company Profiles

• KKR: Leading global investment firm with a diversified portfolio across private equity, credit, real assets, and infrastructure. Manages US\$16 billion in Asia Pacific infrastructure assets.
• Singtel Group: Asia’s leading communications technology group, with a presence in 20 countries and over 820 million mobile customers. Digital InfraCo unit includes data centres, fibre network, subsea cables, and cloud/AI services.
• ST Telemedia: Strategic investor in communications, data centres, and infrastructure technology, with operations in 15 countries across Asia, Europe, and the US.
• STT GDC: One of the world’s fastest-growing data centre providers, with 2.3GW of design capacity in 12 major markets, supporting mission-critical digital infrastructure for global enterprises.

Timeline and Next Steps

The transaction is expected to close in the early second half of 2026, subject to customary closing conditions and regulatory approvals.

Media Contacts

KKR: Wei Jun Ong ([email protected])
Singtel: Lian Pek ([email protected])
ST Telemedia: Stephen Miller ([email protected])
STT GDC: Chow Yi ([email protected])

Disclaimer

This article is for informational purposes only and does not constitute investment advice or an offer to buy or sell any securities. Investors should conduct their own due diligence and consult with professional advisors before making investment decisions. The information provided herein is based on public announcements and may be subject to change pending regulatory approvals and other closing conditions.

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