KKR and Singtel have announced an acquisition to expand their stakes in the digital infrastructure sector. The two entities have entered into definitive agreements with ST Telemedia, paving the path for acquiring an 82% stake in ST Telemedia Global Data Centres (STT GDC). This acquisition from the founding shareholder amounts to S$6.6 billion (approx. US$5.1 billion).
The transaction assigns an enterprise value of approximately S$13.8 billion (around US$10.9 billion), accounting for leverage and capital committed to ongoing projects. Post-acquisition, KKR will hold a 75% stake, while Singtel will manage 25% in the company.
The partnership is not new to STT GDC as their initial involvement began with an investment of S$1.75 billion through preference shares. This investment marked the largest digital infrastructure endeavour in Southeast Asia in 2024, heralding a growth in STT GDC’s pipeline from 1.4GW in 2024 to exceeding 1.7GW presently.
Founded in 2014 and headquartered in Singapore, STT GDC quickly ascended to a prime position in the global data centre arena, allowing for a design capacity of 2.3GW across major markets including the Asia Pacific, UK, and Europe. It aims to offer services that encompass high-quality colocation, connectivity, and 24/7 customer support.
The surge in demand for AI and cloud services has further fuelled the need for data centre expansion, driving companies like STT GDC to provide infrastructure for resource-heavy operations.
David Luboff of KKR commented on the enduring appeal of digital infrastructure investments, attributing its allure to the ongoing evolution of cloud computing and data-rich applications. He emphasised STT GDC’s position due to its diversified reach and development pipeline. With the new partnership, KKR aims to accelerate STT GDC's global growth trajectory using its comprehensive network and expertise.
Arthur Lang from Singtel noted this acquisition aligns with the company's growth vision, Singtel28. With a diverse geographical footprint, this move aims to strengthen Singtel's position, creating new opportunities while maintaining potential for capital optimisation and growth. Underpinning ST Telemedia’s guidance till now, Lang conveyed confidence in the current leadership continuing to scale.
ST Telemedia's Stephen Miller reflected on the growth since the inception of STT GDC, highlighting the achievements over the years and expressing confidence in the new phase of growth requiring substantial capital mobilisation. The partnership portends sustainable expansion and maximisation of market reach.
KKR and Singtel’s investment in STT GDC marks the next stage in the company’s development within the digital infrastructure sector.
