KKR, Singtel near $3.9b deal to buy SG data center firm: sources

KKR and Singapore Telecommunications are in advanced discussions to acquire over 80% of ST Telemedia Global Data Centres for more than S$5 billion (US$3.9 billion), according to two sources familiar with the matter.

The acquisition would give KKR and Singtel full ownership of the Singapore-based data centre operator, which currently has stakes of about 14% and over 4%, respectively.

ST Telemedia, which is wholly owned by Temasek Holdings, owns the remaining shares.

If completed, the deal would be one of Asia’s largest data centre transactions amid rising demand for digital infrastructure driven by AI adoption.

A final agreement could be reached before the end of 2025, though terms and timing may still change.

ST Telemedia Global Data Centres operates more than 100 data centres across over 20 markets, including Singapore, India, Japan, and in Europe via its VIRTUS brand in the UK, Germany, and Italy.

KKR and Singtel previously invested S$1.75 billion in the company in June 2024.

🔗 Source: Reuters

🧠 Food for thought

Implications, context, and why it matters.

Rumored price implies over S$6.25 billion equity value, growth markets raise execution risk

A S$5 billion-plus offer for over 80% pegs equity above S$6.25 billion. ST Telemedia Global Data Centres (STT GDC) runs over 95 data centres with 1.7GW of IT load (power available for servers and networking gear) 1.
This would follow KKR and Singtel’s June 2024 investment. That round kept terms private and sat below the 32x EV/EBITDA multiple KKR paid for Singtel’s Nxera in 2023 2.
Growth exposure in the Philippines and India raises execution risk versus mature Singapore operations. In the Philippines, the company’s unit runs seven facilities with 150MW of IT load 3. It targets 2025 completion for the 124MW STT Fairview project and the 6MW STT Cavite 2 site 3. India’s national data centre capacity is projected to reach about 2,070MW by end-2025 4.

Renewable suppliers could gain from STT GDC’s Southeast Asia decarbonization push

STT GDC Philippines switched to 100% renewable electricity across operations in March 2025 5. It plans to finish the 124MW STT Fairview and 6MW STT Cavite 2 facilities in 2025, which will require renewable power purchase agreements (PPAs) 3.
A 120MW campus is planned in Johor, Malaysia with the first 16MW facility expected to be operational by end-2026 6. STT GDC is discussing supply with providers such as Ditrolic Energy, a Malaysia-based renewable energy developer 6.
Vendors offering Renewable Energy Certificates (RECs), solar, and battery storage can align with STT GDC’s goal of carbon‑neutral operations by 2030 5.