The acquisition, if finalized, would give KKR and Singtel full ownership of one of Asia’s leading data centre operators and mark one of the region’s largest data infrastructure deals to date.
Currently, KKR holds about 14% of STT GDC, while Singtel owns just over 4%. The remaining shares belong to ST Telemedia, a subsidiary of Singapore’s state investment firm Temasek Holdings.
AI Boom Fuels Data Centre Investments
The potential buyout comes amid an unprecedented surge in global demand for data processing and storage infrastructure, driven by the expansion of artificial intelligence (AI), cloud computing, and 5G technologies.
If completed, the deal would significantly strengthen KKR and Singtel’s positions in Asia’s fast-growing digital infrastructure sector, underscoring investor confidence in the long-term profitability of data centre assets.
According to sources cited by Reuters, KKR is leading the acquisition, though the specific investment proportions between the two firms have not been disclosed. The agreement could be finalized before the end of 2025, although negotiations remain ongoing and details could still change.
Background on ST Telemedia Global Data Centres
Founded in 2014 and headquartered in Singapore, STT GDC has evolved into one of the world’s fastest-growing data centre operators. The company manages over 100 data centres across more than 20 major markets, including Singapore, India, Japan, and several European countries under its VIRTUS brand in the U.K., Germany, and Italy.
KKR and Singtel first invested S$1.75 billion in STT GDC in June 2024, marking their entry into the company. Since then, the firm’s valuation has continued to climb in line with global AI-related data centre expansion.
KKR’s Asia Pacific infrastructure unit, launched in 2019, now manages roughly US$13 billion in assets, with recent high-profile acquisitions including Zenith Energy in Australia and ProTen, a poultry farming operator.
No Official Comments Yet
As of press time, KKR, ST Telemedia, and STT GDC declined to comment on the potential deal, while Singtel did not immediately respond to media inquiries.
If concluded, the transaction would further cement Singapore’s position as a key hub for digital infrastructure investment in Asia, reflecting the strategic importance of data centres in powering the region’s rapidly digitizing economies.