On Tuesday, KKR & Co. Inc. (NYSE:KKR), along with Singapore’s largest mobile operator, Singtel, penned an agreement for one of the largest digital infrastructure deals in Southeast Asia.
The funds managed by KKR and Singtel will acquire the remaining 82% stake in ST Telemedia Global Data Centres (STT GDC) from founding shareholder ST Telemedia.
The transaction values the stake at S$6.6 billion (around $5.1 billion) and implies an enterprise value of roughly S$13.8 billion (around $10.9 billion), inclusive of debt and committed capital expenditure.
The deal is expected to close by the early second half of 2026, subject to customary closing conditions.
Post deal closure, KKR and Singtel will hold 75% and 25% ownership in the company, respectively.
Notably, STT GDC is a globally diversified data centre platform with 2.3 GW of design capacity across 12 markets in Asia Pacific, the UK, and Europe, providing colocation, connectivity, and 24/7 support amid rising AI and cloud demand.
Initial Investment
The consortium initially invested S$1.75 billion (around $1.3 billion) in STT GDC in 2024 through preference shares and warrants.
This marked Southeast Asia’s largest digital infrastructure investment that year.
Since that investment, STT GDC has expanded its development pipeline from 1.4 gigawatts in 2024 to more than 1.7 gigawatts.
David Luboff, Co-Head of KKR Asia Pacific and Head of Asia Pacific Infrastructure at KKR, commented, “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.”
”This transaction represents a rare opportunity to further support a high-quality platform and deepen our strategic partnership with Singtel. 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.”
Arthur Lang, Group Chief Financial Officer of Singtel, added, “This acquisition is a significant step towards scaling our new growth engine in digital infrastructure as mapped out in our Singtel28 growth plan. STT GDC’s diverse geographical footprint increases our exposure to new markets and makes the Singtel Group a stronger data centre player with global reach.”
Consortium Success Story
Globally, the consortium’s data centre investments include CyrusOne and Global Technical Realty, which have a strong presence in Europe and the UK.
Since its launch in 2019, KKR’s Asia Pacific infrastructure platform has expanded to about $16 billion in assets under management as of September 30, 2025.
KKR plans to release fourth-quarter results on February 5.
Price Action: KKR shares are up 0.41% at $103.70 premarket at the last check on Wednesday.
Photo via Shutterstock
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