KKR, Singtel seek $3.8b loan for SG data center deal: sources

A consortium of KKR and Singapore Telecommunications (Singtel) is in talks with banks for a loan of about S$5 billion (US$3.8 billion) to fund a potential purchase of ST Telemedia Global Data Centres, according to sources cited by Bloomberg.

The deal may use a bridge facility split between a term loan and a revolving credit tranche, with banks expected to share the financing.

If completed, the transaction could become Asia’s largest leveraged buyout financing in the data center sector, based on Bloomberg data.

ST Telemedia Global Data Centres, based in Singapore, operates over 100 data centers across 20 markets in Asia and Europe.

The consortium previously invested S$1.75 billion in the company for minority stakes, with KKR now holding 14.1% and Singtel 4.2%.

Discussions are ongoing, and details may change.

🔗 Source: Bloomberg

🧠 Food for thought

Implications, context, and why it matters.

S$5 billion bridge loan at risk if STT GDC’s leverage tops recent deals

KKR and Singtel paid 32x EV/EBITDA (enterprise value to earnings before interest, taxes, depreciation, and amortization) for Singtel’s Nxera 1. Leverage multiples describe how much debt sits against cash earnings.
A close peer was Blackstone’s A$5.5 billion loan for AirTrunk in 2024 2. STT GDC has not shared profitability, so whether a S$5 billion bridge plus S$1.75 billion already invested 3 allows coverage is unclear.
Bridge loans provide short-term funding until longer-term sources arrive. They usually refinance within 12 to 24 months through debt or equity, so the group must land an IPO, explored in the US or Singapore 4, or secure long-term funding.

Suppliers and builders should target STT GDC’s 1.7GW portfolio in 11 markets

STT GDC plans a 70MW Tokyo campus 5, a 120MW Johor campus with a 16MW first phase by end 2026 6, and INR 5,000 crore (50 billion Indian rupees) for AI-ready campuses in Maharashtra 7. These sites need power gear, cooling, and construction. Some use liquid cooling that routes coolant to heat-generating components.
DBS Bank research says KKR may ease power constraints by linking electricity suppliers with data center operators 1. STT GDC is in talks with Ditrolic Energy, a clean-power developer, for Johor 6.
Vendors with high-density solutions, systems built to support higher power per rack, should watch the Philippines, which has 1,505MW in development versus 215MW existing capacity 8. STT GDC will finish 130MW across two sites in 2025 and is designing phase two of STT Fairview 8.