KKR and Singtel to acquire remaining stake in data center firm STT GDC for over $5 billion

Private equity firm KKR and Singapore Telecommunications will buy the remaining 82% stake in data center operator ST Telemedia Global Data Centers for 6.6 billion Singapore dollars ($5.1 billion), KKR said on Wednesday.

The deal pegs STT GDC’s enterprise value at S$13.8 billion and comes at a time when there is a jump in data center demand driven by the boom in artificial intelligence.

Upon completion, KKR will hold a 75% stake in STT GDC, while Singtel will hold the remaining 25%, taking into account the conversion of existing preference shares held by both investors.

KKR said the deal represents the largest ever infrastructure investment in Asia Pacific as global investment in data centers accelerates due to the growing need for cloud computing and AI workloads.

Driven by the rush to create the infrastructure required for energy-intensive AI workloads, global data center deals broke a new record last year; S&P Global reports that more than $61 billion has flowed into the data center market, up from $60.8 billion last year.

“Digital infrastructure remains one of the most compelling long-term investment themes globally,” said David Luboff, co-chairman of KKR Asia Pacific and head of infrastructure for Asia Pacific, citing STT GDC’s diversified footprint and development pipeline.

Founded in 2014 and headquartered in Singapore, STT GDC operates data centers in 12 markets in Asia Pacific, the UK and Europe, with a design capacity of 2.3 gigawatts. The company provides colocation, connectivity and support services to hyperscalers and enterprise customers.

“STT GDC’s diverse geographic footprint enhances our expansion into new markets and makes Singtel Group a stronger data center player with global reach,” said Arthur Lang, Singtel’s group chief financial officer.