KKR and Singtel seal US$10.9 billion STT GDC buyout in Southeast Asia's largest digital infrastructure deal

Transaction cements Singtel's pivot to data centres while positioning KKR as regional infrastructure consolidator.

Global investment firm KKR and Singapore Telecommunications (Singtel) have agreed to acquire the remaining 82% stake in ST Telemedia Global Data Centres (STT GDC) for S$6.6 billion (US$5.1 billion), marking one of Southeast Asia's largest digital infrastructure transactions at an enterprise value of S$13.8 billion (US$10.9 billion).

The deal, announced February 4, will see KKR take a 75% stake and Singtel 25% upon completion, expected in early second half of 2026 subject to regulatory approvals. The figures include leverage and capital expenditure for committed projects, according to a joint statement from the parties.

The acquisition builds on the consortium's initial S$1.75 billion investment in STT GDC through preference shares and warrants in 2024, which at the time represented the region's largest digital infrastructure investment. Since then, STT GDC has expanded its pipeline from 1.4GW to over 1.7GW.

"Digital infrastructure remains one of the most compelling long-term investment themes globally as cloud computing and data-rich applications continue to reshape how data is created, stored, and processed," said David Luboff, co-head of KKR Asia Pacific and head of Asia Pacific infrastructure at KKR.

For Singtel, the transaction accelerates its strategic shift toward digital infrastructure under its Singtel28 growth plan. Arthur Lang, group chief financial officer of Singtel, said the acquisition "meaningfully changes the business complexion of the Group while creating new opportunities for capital optimization and growth."

The deal adds to Singtel's existing data center portfolio, which includes Nxera—where KKR also holds a 20% stake acquired in September 2023. Combined, the assets position Singtel as a stronger global data center player with expanded geographical reach.

STT GDC operates 2.3GW of design capacity across 12 markets in Asia Pacific, the United Kingdom, and Europe, providing colocation, connectivity, and support services. Founded in 2014 by ST Telemedia and headquartered in Singapore, the company serves growing demand for AI and cloud infrastructure.

"As the data center sector has fundamentally shifted, its exponential trajectory now requires a different scale of capital and specialized focus for STT GDC's next exciting phase of continued growth," said Stephen Miller, president and group CEO of ST Telemedia.

KKR's investment comes from its Asia Pacific infrastructure strategy, which has grown to approximately US$16 billion in assets under management since 2019. The firm's regional digital infrastructure portfolio includes Nxera, Philippine-focused Pinnacle Towers, and subsea cable provider OMS Group.

The transaction underscores continued investor appetite for data center assets across Southeast Asia as AI adoption drives demand for computing capacity. Singtel confirmed the deal will not impact its credit rating or dividend policy.