Singapore sovereign wealth fund GIC and Abu Dhabi’s Mubadala Investment Co are reportedly in discussions to join KKR & Co and Singapore Telecommunications Ltd (Singtel) in a potential acquisition of data centre operator STT GDC Pte, according to a report by Bloomberg.
The report cites sources familiar with the matter as saying that the sovereign funds would participate as minority co-investors in the deal, which could value STT GDC at over $10bn including debt.
KKR and Singtel have previously held a minority stake in STT GDC, paying $1.3bn in 2025, while the remainder is owned by ST Telemedia, backed by Singapore state investor Temasek Holdings Pte. The companies are understood to be negotiating financing for the transaction, with a potential SGD5bn ($3.9bn) loan from banks under consideration.
STT GDC operates more than 100 data centres across 20 markets, including India, Japan, South Korea, Malaysia, the UK, Italy, and Germany, offering co-location, connectivity, and managed services. The company has become a focal point for investors seeking exposure to digital infrastructure amid the surge in AI-driven data demand.
Data centre transactions have attracted significant attention in recent months, highlighted by BlackRock’s Global Infrastructure Partners’ $40bn purchase of Aligned Data Centers and SoftBank’s $3bn acquisition of DigitalBridge Group. However, some caution exists in the market, with SoftBank recently pausing talks to acquire US operator Switch Inc., reflecting concerns about high levels of capital deployment in AI infrastructure.
There is no certainty at the stage that a definitive agreement will be reached.
