Global investment firm KKR & Co and Singapore Telecommunications (Singtel) are in advanced talks to acquire more than 80% of ST Telemedia Global Data Centres (STT GDC), which would give them full ownership of the Singapore-based data center operator, sources familiar with the plans said. The transaction is valued at over S$5 billion ($3.9 billion), potentially ranking it among Asia’s largest data centre deals.

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Current Ownership Structure

• KKR currently holds a 14% stake in STT GDC.
• Singtel owns more than 4%.
• The remaining shares are held by ST Telemedia, fully owned by Singapore state investor Temasek Holdings.

If completed, the acquisition would consolidate control under KKR and Singtel, enabling streamlined operations and strategic expansion amid soaring demand for digital infrastructure driven by AI adoption.

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Deal Significance and Market Context

Founded in 2014 and headquartered in Singapore, ST Telemedia Global Data Centres has grown into one of the world’s fastest-growing data centre providers. The firm operates over 100 data centres with more than 2 gigawatts of IT load across 20 major markets, including Singapore, India, Japan, and Europe through its VIRTUS brand in the U.K., Germany, and Italy.

The current AI boom has increased demand for data centres globally, making the sector a highly sought-after investment area for private equity and telecom companies alike.

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Previous Investments and Strategic Moves

KKR and Singtel initially invested S$1.75 billion in STT GDC in June 2024. KKR’s Asia Pacific infrastructure division, launched in 2019, manages around $13 billion in assets, including recent acquisitions such as Zenith Energy in Australia and poultry operator ProTen.

KKR is reportedly leading the acquisition, though exact investment contributions by Singtel and KKR have not been disclosed. Sources say a deal could close before year-end, though timelines and terms may still evolve.

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Implications for the Data Centre Market

Full ownership would allow KKR and Singtel to:

• Expand AI-focused cloud infrastructure services.
• Leverage global scale operations across Europe and Asia.
• Strengthen competitive positioning in the rapidly growing data centre market.

Industry analysts note that consolidation in data centres is becoming increasingly common as digital transformation and AI adoption drive the need for reliable, high-capacity infrastructure.