ST Telemedia Global Data Centers to be fully acquired by KKR-led group and Singtel for $5.1 Bn
Singapore’s communications technology company Singtel and international investment firm KKR announced on Wednesday that they will fully purchase data center colocation services provider ST Telemedia Global Data Centers (STT GDC) for S$6.6 billion ($5.1 billion).
According to a statement from Singtel, the consortium and ST Telemedia have finalized agreements whereby funds managed by KKR and Singtel will purchase the remaining 82 percent of STT GDC from ST Telemedia, the company’s founding shareholder.
Including leverage and capital expenditures for committed projects, the acquisition price indicates an implied enterprise value of roughly S$13.8 billion (roughly $10.9 billion).
After everything is finished, KKR and Singtel will own 75% and 25% of the business, respectively, after converting their current redeemable preference shares.
In 2024, the consortium made the largest investment in digital infrastructure in Southeast Asia by investing S$1.75 billion (roughly $1.3 billion) in STT GDC through preference shares and warrants.
Since then, the company’s pipeline has expanded from 1.4GW in 2024 to more than 1.7GW.
With 2.3GW of design capacity spread across 12 major markets in Asia Pacific, the United Kingdom, and Europe, STT GDC, one of the fastest-growing and most diversified data center platforms globally, was founded in 2014 by ST Telemedia and has its headquarters in Singapore.
Among the essential services it offers are excellent colocation, connectivity, and 24/7 support.
The increasing demand for cloud services and artificial intelligence (AI) is driving resource-intensive workloads and necessitating the construction of new data centers.
“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,
“STT GDC is well-positioned within this landscape, with a diversified footprint, strong development pipeline and a leadership team with a clear vision for global scale,” said David Luboff, Co-Head of KKR Asia Pacific and Head of Asia Pacific Infrastructure at KKR.
He claims that this deal is a unique chance to strengthen their strategic alliance with Singtel and provide additional support for a top-notch platform.
“We look forward to deploying KKR’s global network and deep digital infrastructure expertise to help STT GDC accelerate its next phase of sustainable, international growth,” he added.
According to Singtel’s Group Chief Financial Officer Arthur Lang, this acquisition is a major step toward scaling their new digital infrastructure growth engine as outlined in their Singtel28 growth plan.
He claims that STT GDC’s wide geographic reach broadens their market reach and strengthens the Singtel Group’s position as a major player in the data center industry with a global presence.
