Singapore, Feb 4, 2026, 22:56 (SGT)
- KKR-led consortium and Singtel agreed to shell out S$6.6 billion for the remaining 82% stake in STT GDC
- The agreement values the enterprise at roughly S$13.8 billion; post-conversion, KKR will hold 75% ownership, with Singtel retaining 25%
- Singtel shares reached a record high; the closing is anticipated in the latter half of 2026, pending necessary approvals
KKR and Singapore Telecommunications are shelling out S$6.6 billion ($5.2 billion) to acquire the remaining shares in ST Telemedia Global Data Centres. This move gives them full ownership of the Singapore-based operator, STT GDC.
The deal comes amid a rush for capacity to support artificial intelligence and cloud computing, placing data centres alongside power, ports, and fibre lines as key strategic assets. The enterprise value, which factors in debt, stands at roughly S$13.8 billion ($10.9 billion).
Singtel is making another tough shift from the traditional telco model, banking on digital infrastructure to carry more weight as mobile markets mature and competition remains fierce.
STT GDC, established in 2014, offers colocation services—rented space, power, and cooling for servers—plus connectivity and 24/7 support. Its design capacity totals roughly 2.3 gigawatts, spread over 12 key markets in Asia-Pacific, Britain, and select European regions.
The companies said the cash will be paid in two equal tranches, with half due at closing and the remainder roughly a year later. The acquisition vehicle has secured around S$5 billion in debt facilities, while Singtel has pledged S$740 million in equity from internal cash, all without altering its dividend or credit stance.
Investors pushed Singtel shares to a fresh high of S$4.95 before the stock closed up 1% at S$4.91. Phillip Securities Research head Paul Chew called the deal a “funnel for growth.” At the same time, Maybank analyst Hussaini Saifee noted Singtel’s “right to play” in data centres, citing its network assets and solid track record. (Reuters)
The Business Times reported that analysts believe the buyout will catapult Singtel into the upper echelon of Asia-Pacific data centre operators and accelerate its pivot to digital infrastructure as a key growth engine. (The Business Times)
KKR executive David Luboff described the acquisition as a “rare opportunity” to strengthen ties with Singtel. Singtel CFO Arthur Lang called it “a significant step” toward expanding digital infrastructure under the firm’s Singtel28 plan. ST Telemedia CEO Stephen Miller noted the sector’s growth now “requires a different scale of capital” for what comes next. (Business Wire)
The Wall Street Journal reported that KKR views this acquisition as its largest infrastructure investment in the Asia-Pacific region. The report also noted that STT GDC operates over 100 AI-ready data centers and partners with Nvidia to handle AI workloads. (The Wall Street Journal)
The deal still requires regulatory approval and is expected to close in the latter half of 2026. Returns depend heavily on securing power access, meeting construction deadlines, and whether the surge in AI spending sustains enough to keep new capacity running at premium rates.
Citi served as lead financial adviser to the consortium and arranged acquisition financing. Bank of America also provided advice to KKR and Singtel. J.P. Morgan was the exclusive financial adviser to the seller, ST Telemedia.
