An investor group led by private investment major KKR & Co has agreed to acquire Singapore-based data centre operator STT GDC Pte for SGD6.6bn ($5.2bn) in cash, marking the latest major transaction in the digital infrastructure sector, according to a report by Bloomberg.
The consortium includes Singtel, which will take a 25% stake, with KKR holding the remaining 75%. The deal carries an implied enterprise value of SGD13.8bn, factoring in leverage and committed capital expenditures, and is expected to close by the second half of 2026 without the need for shareholder approval.
STT GDC, established in 2014, is one of Asia’s largest data centre operators, with over 100 facilities across 20 markets, including India, Japan, South Korea, Malaysia, and select European locations. Its services span co-location, connectivity, and managed support.
KKR is backing the acquisition primarily through its Asia Pacific infrastructure strategy, which also includes stakes in Nxera, Pinnacle Towers, and subsea telecoms provider OMS Group. The firm cited cloud computing growth and AI-driven data demand as key drivers for the investment.
Singtel, which is partially owned by Temasek Holdings, described the transaction as a step in its strategy to pivot toward digital infrastructure while diversifying market exposure. Temasek also welcomed the deal, noting that KKR and Singtel’s combined expertise would support STT GDC’s expansion.
The transaction follows KKR and Singtel’s $1.3bn minority investment in STT GDC in 2025 and reflects broader investor appetite for digital infrastructure, amid a wave of high-profile data centre deals globally, including BlackRock’s Global Infrastructure Partners’ $40bn Aligned Data Centers acquisition.
Citigroup acted as lead financial advisor to KKR and Singtel, while JPMorgan Chase advised ST Telemedia, STT GDC’s parent company.
