Global investment firm KKR and Singapore’s communications technology group Singtel announced Wednesday they will fully acquire data center colocation services provider ST Telemedia Global Data Centers (STT GDC) at S$6.6 billion ($5.1 billion).
Singtel said in a statement that the duo (consortium) and ST Telemedia have signed the definitive agreements under which funds managed by KKR and Singtel will acquire the remaining 82 percent stake in STT GDC, from founding shareholder ST Telemedia.
The acquisition price represents an implied enterprise value of approximately S$13.8 billion (approximately $10.9 billion), including leverage and capital expenditure for committed projects.
Upon completion, KKR and Singtel will own stakes of 75 percent and 25 percent respectively in the company, taking into account the conversion of existing redeemable preference shares that both KKR and Singtel hold in the company.
The consortium first invested S$1.75 billion (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, the company has grown its pipeline from 1.4GW in 2024 to over 1.7GW.
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 2.3GW of design capacity across 12 major markets in Asia Pacific and United Kingdom and Europe.
It provides critical services including high-quality colocation, connectivity and round-the-clock support services.
As demand for artificial intelligence (AI) and cloud services continues to accelerate, it is fueling the need for new data centers to drive resource-intensive workloads.
“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,” said David Luboff, Co-Head of KKR Asia Pacific and Head of Asia Pacific Infrastructure at KKR.
According to him, this transaction represents a rare opportunity to further support a high-quality platform and deepen their strategic partnership with Singtel.
“We look forward to deploying KKR’s global network and deep digital infrastructure expertise to help STT GDC accelerate its next phase of sustainable, international growth,” he added.
Arthur Lang, Group Chief Financial Officer of Singtel, said this acquisition is a significant step towards scaling their new growth engine in digital infrastructure as mapped out in their Singtel28 growth plan.
According to him, STT GDC’s diverse geographical footprint increases their exposure to new markets and makes the Singtel Group a stronger data center player with global reach.
“We appreciate ST Telemedia’s stewardship of the company and are confident that its seasoned leadership team will continue to scale the solid platform they have built,
“When added to our portfolio of data center 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 optimization and growth,” he said.
He also said the firm 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,” he added.
Stephen Miller, President & Group CEO of ST Telemedia, said ST Telemedia established STT GDC 12 years ago to pioneer one of Asia Pacific’s leading data center platforms, combined with an equally strong position in the United Kingdom and Europe through VIRTUS.
“As the data center sector has fundamentally shifted, its exponential trajectory now requires a different scale of capital and specialized focus for STT GDC’s next exciting phase of continued growth,
“As a long-term, strategic shareholder, we have steadfastly supported STT GDC’s development and transformation,” he said.
He also said this transaction demonstrates their strategic stewardship while ensuring STT GDC’s ongoing sustainable growth with an optimal partner.
Bruno Lopez, President & Group Chief Executive Officer of STT GDC, said the announcement marks an exciting new chapter in STT GDC’s journey, building on the strong foundations established over the past 12 years.
According to him, 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 artificial intelligence (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,” he added.
The transaction is expected to close by early second half of 2026, subject to customary closing conditions, including regulatory approvals.
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