KKR, Singtel to acquire STT GDC for $5.1b

KKR, Singtel, and ST Telemedia have announced plans to acquire the remaining 82% of ST Telemedia Global Data Centres (STT GDC) for S$6.6 billion (US$5.19 billion), valuing the company at around S$13.8 billion (US$10.9 billion).

The deal, expected to close in early H2 2026, will give KKR a 75% stake and Singtel 25%, after converting existing shares.

STT GDC, founded in 2014 and headquartered in Singapore, operates 2.3 GW of data center capacity across 12 markets in Asia Pacific, the UK, and Europe.

The company has seen its pipeline grow from 1.4 GW to over 1.7 GW since 2024.

This transaction is part of KKR’s ongoing digital infrastructure investments in Southeast Asia and globally.

Both Singtel and ST Telemedia will continue to support the company’s growth, with the focus on expanding data center capacity amid rising demand for cloud and AI services.

🔗 Source: Singtel

🧠 Food for thought

Implications, context, and why it matters.

This US$10.9 billion buyout followed a slow build, not a sudden move

This acquisition continues a multi-year plan rather than a surprise purchase.
KKR and Singtel secured an early stake by putting S$1.75 billion (~US$1.3 billion) into STT GDC in June 2024 through redeemable preference shares (a type of equity that can be bought back by the issuer) with detachable warrants (financial instruments that can later be converted into shares) 1.
Earlier talks pegged the company at more than US$5 billion, so the current valuation sits at roughly twice that level due to demand for data center assets 2.
Other global investors also circled the deal, including Singapore’s GIC (the country’s sovereign wealth fund) and Abu Dhabi’s Mubadala (a state-backed investment firm) as potential minority backers alongside KKR and Singtel 3.

The deal hints at a turn from building to buying in AI infrastructure

For Singtel, the buyout offers a faster route than relying on Nxera (Singtel’s data center unit) to lift capacity above 200MW by 2028 4.
It would also add STT GDC’s scale, reported at over 2.3GW of total IT load capacity, which commentary said could make Nxera a “powerhouse overnight” 5.
For KKR, the purchase fits a wider digital infrastructure push. It co-owns data center operator CyrusOne with Global Infrastructure Partners (GIP, an infrastructure investment firm) and supports European operator GTR (a data center company) 2.
The transaction would hand KKR control of a large platform built before the AI boom, in a sector that leans on private equity for growth capital 5.