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KKR and Singtel Move to 100% Ownership of STT GDC

Private equity giant KKR and Singapore Telecommunications (Singtel) have agreed to acquire full ownership of ST Telemedia Global Data Centres (STT GDC) in a transaction valued at 6.6 billion Singapore dollars, or approximately $5.1 billion.

The deal, announced Wednesday, involves the purchase of the remaining 82% stake in STT GDC and places the company’s total enterprise value at S$13.8 billion. Once the transaction closes, KKR will hold a 75% controlling stake, while Singtel will own the remaining 25%, factoring in the conversion of preference shares already held by both investors.

The acquisition comes amid a global surge in demand for data center capacity, driven largely by the rapid expansion of artificial intelligence, cloud computing, and high-performance workloads.

A Major Bet on Asia-Pacific Digital Infrastructure

KKR described the transaction as its largest infrastructure investment in the Asia-Pacific region to date, underscoring how central digital infrastructure has become to its global strategy.

David Luboff, co-head of KKR Asia Pacific and head of Asia Pacific infrastructure, said digital infrastructure remains one of the most attractive long-term investment themes worldwide. He highlighted STT GDC’s diversified geographic footprint and strong development pipeline as key factors behind the decision to deepen KKR’s commitment.

For Singtel, the deal significantly strengthens its position in the global data center market. Arthur Lang, Singtel’s group chief financial officer, said STT GDC’s international presence expands Singtel’s exposure to new markets and enhances the group’s standing as a global data center operator.

KKR and Singtel first invested in STT GDC in June 2024, committing about S$1.75 billion for a minority stake. Less than two years later, they are now moving to take the company fully private.

Record-Breaking Deal Activity Fueled by AI

The timing of the acquisition reflects explosive growth in data center investment worldwide. As AI models grow larger and more energy-intensive, hyperscalers and enterprises are racing to secure reliable capacity.

According to S&P Global, global data center dealmaking reached a fresh record last year, with more than $61 billion flowing into the sector, slightly above the $60.8 billion recorded the previous year. Investors are increasingly drawn to data centers for their long-term contracts, recurring revenues, and critical role in powering AI and cloud ecosystems.

Citi served as lead financial advisor to KKR and Singtel, and banking data shows the transaction is the largest mergers and acquisitions deal in Singapore in the past four years.

Market reaction was mixed but generally positive. Singtel shares climbed nearly 2% to hit a record high before easing back, last trading about 0.41% higher. KKR shares, which had dropped almost 10% in the prior session, rebounded around 0.5% in after-hours trading.

Inside STT GDC’s Global Platform

Founded in 2014 and headquartered in Singapore, STT GDC has rapidly built a sizable international footprint. The company operates data centers across 12 markets spanning Asia Pacific, the United Kingdom, and Europe, with a total design capacity of approximately 2.3 gigawatts.

Its facilities provide colocation, connectivity, and support services to hyperscale cloud providers as well as large enterprise customers. As AI adoption accelerates, operators like STT GDC are seeing increased demand for high-density, energy-efficient facilities capable of supporting advanced computing workloads.

Industry analysts note that Asia-Pacific remains one of the fastest-growing regions for data center development, driven by expanding digital economies, rising cloud adoption, and government-backed technology initiatives in markets such as Singapore, India, and Southeast Asia.

Strategic Implications for KKR and Singtel

For KKR, the acquisition deepens its exposure to a sector that combines infrastructure stability with technology-driven growth. The firm has been steadily increasing its presence in digital assets, including fiber networks, edge computing, and data centers, as part of a broader push into next-generation infrastructure.

For Singtel, full ownership alongside KKR provides tighter integration between its telecom operations and global data center platform, potentially unlocking synergies in connectivity, enterprise services, and regional expansion.

With STT GDC now fully under their control, both partners are expected to accelerate development projects, expand capacity in high-growth markets, and pursue additional partnerships with hyperscalers seeking large-scale AI-ready infrastructure.

The $5.1 billion buyout highlights how critical data centers have become in the age of artificial intelligence. As demand for compute power continues to rise, deals of this scale are likely to become more common, positioning operators like STT GDC at the center of the global digital economy.

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