Global investment firm KKR and Singapore’s telecoms giant Singapore Telecommunications have agreed to acquire full ownership of ST Telemedia Global Data Centres, cementing one of the largest digital infrastructure transactions seen in Asia in recent years.
Under the agreement, KKR and Singtel will jointly buy the remaining 82 percent stake in STT GDC for 6.6 billion Singapore dollars, equivalent to roughly $5.1 billion, valuing the company at an enterprise level of S$13.8 billion. The transaction underscores intensifying investor appetite for data center assets as artificial intelligence and cloud computing drive unprecedented demand for digital infrastructure.
Ownership structure after the transaction
Once the deal is completed, KKR will emerge as the controlling shareholder with a 75 percent stake, while Singtel will retain the remaining 25 percent, following the conversion of preference shares already held by both investors. The move gives both firms full strategic control over one of the fastest-growing data center platforms operating across multiple continents.
For KKR, the acquisition represents its largest infrastructure investment in the Asia Pacific region to date, highlighting the firm’s conviction that data centers will remain a cornerstone of long-term global investment strategies.
AI boom fuels data center expansion
The transaction comes amid a sharp rise in global demand for data centers, largely fueled by the rapid expansion of artificial intelligence workloads, cloud services, and data-intensive enterprise applications. These trends are reshaping capital allocation across infrastructure markets, with investors racing to secure assets capable of supporting energy-hungry compute environments.
Industry data shows that global dealmaking in the data center sector reached a new high last year, as investors poured more than $61 billion into the space, reflecting confidence in sustained growth driven by digital transformation.
Market reaction and financial advisors
Following news of the acquisition, Singtel’s shares briefly climbed nearly 2 percent to a record high before moderating, while KKR shares rebounded modestly in after-hours trading after earlier losses.
The transaction is being advised by Citigroup and Bank of America on behalf of KKR and Singtel, with J.P. Morgan acting as the sole financial advisor to ST Telemedia. According to market data, the deal ranks as the largest merger and acquisition transaction in Singapore in the past four years.
STT GDC’s global footprint
Founded in 2014 and headquartered in Singapore, STT GDC has built a significant global presence, operating data centers across 12 markets spanning Asia Pacific, the United Kingdom, and Europe. The company currently manages a development pipeline totaling 2.3 gigawatts of design capacity, positioning it as a key partner for hyperscalers and large enterprise customers.
Its services include colocation, high-speed connectivity, and operational support for customers requiring scalable and resilient infrastructure to meet growing data and compute needs.
Strategic rationale for KKR and Singtel
KKR executives have described digital infrastructure as one of the most compelling long-term investment themes globally, citing STT GDC’s diversified geographic footprint and robust expansion pipeline as central to the deal’s appeal.
For Singtel, the transaction significantly strengthens its position in the global data center market. Company executives said the acquisition expands Singtel’s exposure to new regions while reinforcing its role as a major digital infrastructure provider with international reach.
Building on earlier investment
KKR and Singtel are not newcomers to STT GDC. The two firms first invested in the company in June 2024, committing S$1.75 billion for a minority stake. The latest transaction marks a decisive step from strategic partnership to full ownership, reflecting increased confidence in the company’s growth trajectory.
As data centers become increasingly critical to powering AI, cloud computing, and next-generation digital services, the acquisition positions KKR and Singtel at the center of one of the most competitive and capital-intensive sectors in global infrastructure.
