• Private equity firm and telco take control of major datacentre operator
• ST Telemedia Global Data Centres (STT GDC) has facilities in 12 Asia Pacific markets and three countries in Europe
• The deal values STT GDC at $10.9bn

Following a few days of speculation that a deal was in the works, giant private equity firm KKR and Singtel have taken control of Singapore-based ST Telemedia Global Data Centres (STT GDC) by acquiring ST Telemedia’s 82% stake in the datacentre operator for 6.6bn Singapore dollars (SGD) (US$5.1bn). 

The price implies an enterprise value for STT GDC of SGD $13.8bn (US$10.9bn) once all financial factors, including capital expenditure for committed datacentre builds, are considered. 

Once the deal closes, which is expected in the second half of 2026, KKR will hold a 75% stake in STT GDC while Singtel will own the remaining 25%.  

Established in 2014 by ST Telemedia, STT GDC claims to be “one of the world’s fastest-growing and most diversified datacentre platforms” with 2.3GW of design capacity across 12 major markets across the Asia Pacific region as well as Europe (Germany, Italy and the UK). KKR and Singtel first invested in the company in 2024. 

The company offers “high-quality colocation, connectivity and round-the-clock support services.” 

Arthur Lang, Singtel’s group CFO, stated: “This acquisition is a significant step towards scaling our new growth engine in digital infrastructure as mapped out in our Singtel28 growth plan. STT GDC's diverse geographical footprint increases our exposure to new markets and makes the Singtel Group a stronger datacentre player with global reach. 

He continued: “When added to our portfolio of datacentre assets that includes Nxera, in which KKR is also a capital partner, it meaningfully changes the business complexion of the group while creating new opportunities for capital optimisation and growth. We will continue to exercise discipline in capital allocation and evaluate capital recycling alternatives to fund growth and maintain balance-sheet efficiency. Our dividend and growth plans under Singtel28 remain intact.”

In September 2023, KKR acquired a 20% stake in Nxera. The operational capacity of Nxera’s datacentres in South-east Asia is expected to more than double from over 200MW in 2026 to more than 400MW in “the mid-term”, the telco noted. “These datacentres, together with the group’s extensive regional terrestrial fibre network, subsea cable network spanning more than 195,000km across 30 countries, Paragon orchestration platform and RE:AI AI cloud service, form the core portfolio of its Digital InfraCo unit,” added Singtel. 

David Luboff, co-head of KKR Asia Pacific and head of Asia Pacific infrastructure at KKR, added: “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.”

Bruno Lopez, president and group CEO of STT GDC, added: “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. 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. Coupled with our proven leadership and exceptional teams across all markets, STT GDC is well positioned to shape the future of sustainable digital infrastructure and continue delivering value to our customers, partners and employees.”

- Ray Le Maistre, Editorial Director, TelecomTV