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Post by : Badri Ariffin
Global investors are sharpening their focus on Asia's digital backbone as KKR & Co and Singapore Telecommunications (Singtel) move toward acquiring a majority stake in ST Telemedia Global Data Centres (STT GDC) in a transaction that sources say could exceed S$5 billion (about US$3.9 billion).
Deal snapshot and players:
KKR currently owns roughly 14% of STT GDC, while Singtel holds just over 4%. The remaining shares are controlled by ST Telemedia, which is fully owned by state investor Temasek Holdings.
The parties are negotiating to acquire in excess of 80% of STT GDC, a level that would transfer effective control to the buyers.
Insiders describe the valuation as "over S$5 billion."
Earlier this year in June 2024, KKR and Singtel jointly put S$1.75 billion (roughly US$1.3 billion) into STT GDC through a consortium, marking a major Southeast Asian infrastructure investment for the year.
Why the transaction is significant:
STT GDC runs more than 100 data centres across some 20-plus key markets, including nations across Asia (India, Japan, Singapore, South Korea) and Europe (UK, Germany, Italy).
Surging demand for AI-ready infrastructure, cloud platforms and colocation services is driving rapid expansion in Asia's data-centre sector; STT GDC is well placed to benefit from this trend.
If completed, the deal would move KKR and Singtel from minority stakeholders to owners of one of the region's most scalable digital-infrastructure networks.
Context & possible implications:
A transaction at this scale would rank among the largest data-centre deals in Asia, underscoring a shift toward investing in digital backbone assets.
For Singtel, the purchase would deepen its push into infrastructure beyond pure telecoms, supporting broader cloud and data-service ambitions.
For KKR, the acquisition fits a strategy focused on long-duration infrastructure with predictable cash flows and growth tied to data demand.
The agreement remains subject to final negotiations and regulatory sign-offs; while discussions are advanced, timing could change or talks could stall.
Key numbers at a glance:
Deal size: Over S$5 billion (~US$3.9 billion) for a stake exceeding 80%.
Existing KKR stake: ~14%.
Existing Singtel stake: >4%.
Prior 2024 investment by KKR‑Singtel: S$1.75 billion.
In summary, the prospective takeover of STT GDC by KKR and Singtel would be a strategic bet on Asia's expanding digital infrastructure. As AI, cloud and enterprise workloads continue to drive capacity needs, control of a major regional platform could prove strategically valuable. Observers will be watching how integration, regulation and competitive dynamics influence the final outcome.
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