KKR and Singtel want complete ownership of Singapore data center company in 3.9 billion dollar agreement according to sources

Overview

KKR and Singtel are in advanced discussions to jointly acquire full ownership of Singapore-based data centre giant ST Telemedia Global Data Centres (STT GDC) in a deal valued at approximately $5 billion[5][3]. This move underscores the escalating significance of data centres and digital infrastructure, driven by the growing needs of artificial intelligence and cloud computing throughout Asia.

Key Details of the Acquisition

• Advanced negotiations: KKR and Singtel seek to purchase over 80% of STT GDC, securing complete control and ownership over the Singapore firm.
• Valuation: The deal is estimated to be worth $5 billion, reflecting the enormous value attributed to digital infrastructure investments in the region[5].
• Current footprint: STT GDC operates more than 95 data centres across Asia-Pacific and beyond, with facilities equipped for high-performance, AI-ready tasks[3][4].

Strategic Rationale

• Market growth: Southeast Asia’s data centre market is projected to expand by 17% annually through 2027, outpacing global averages[2].
• AI and cloud surge: Increased demand for AI workloads and cloud services is fueling the need for GPU-powered, scalable facilities.
• Operational synergy: Combining KKR’s investment expertise and Singtel’s regional telecom reach positions the partnership for robust regional expansion and innovation[1].
• Sustainability focus: The partners plan for energy-efficient developments and renewable energy integration to appeal to environmentally-conscious clients[1].

Growth and Expansion Plans

• Capital deployment: Proceeds from the buyout will accelerate STT GDC’s regional expansion, especially in Singapore, Malaysia, Indonesia, and Thailand[2][3].
• Capacity building: New investments could enable up to 60 MW additional power capacity for the region annually, meeting rapidly increasing enterprise and AI demand[1].
• New locations: Plans include building new data centres in emerging Asian hubs, and acquiring existing assets to strengthen the network[1].

Customer Impact and Competitive Edge

• Enhanced offerings: Clients can expect scalable, secure, and energy-efficient data centre solutions tailored for enterprise and AI-driven use cases[1].
• Regional reach: Full ownership and expanded capacity position KKR and Singtel to serve both local and international clients more efficiently.
• Value-added services: Beyond physical infrastructure, offerings will include hybrid cloud, cyber security, and advanced network connectivity options[1].

Industry Outlook

• Private equity, led by firms like KKR, is strengthening its dominance in the region’s data centre sector, now accounting for nearly 38% of major investments in 2025[3].
• This deal signals further consolidation and the continued evolution of Asia-Pacific’s digital infrastructure landscape.

Regional reach: Full ownership and expanded capacity position KKR and Singtel to serve both local and international clients more efficiently.

Regional reach: Full ownership and expanded capacity position KKR and Singtel to serve both local and international clients more efficiently.