KKR and Singtel have introduced an acquisition to broaden their stakes within the digital infrastructure sector. The 2 entities have entered into definitive agreements with ST Telemedia, paving the trail for buying an 82% stake in ST Telemedia International Knowledge Centres (STT GDC). This acquisition from the founding shareholder quantities to S$6.6 billion (approx. US$5.1 billion).
The transaction assigns an enterprise worth of roughly S$13.8 billion (round US$10.9 billion), accounting for leverage and capital dedicated to ongoing tasks. Put up-acquisition, KKR will maintain a 75% stake, whereas Singtel will handle 25% within the firm.
The partnership is just not new to STT GDC as their preliminary involvement started with an funding of S$1.75 billion by means of choice shares. This funding marked the biggest digital infrastructure endeavour in Southeast Asia in 2024, heralding a progress in STT GDC’s pipeline from 1.4GW in 2024 to exceeding 1.7GW presently.
Based in 2014 and headquartered in Singapore, STT GDC rapidly ascended to a first-rate place within the world knowledge centre area, permitting for a design capability of two.3GW throughout main markets together with the Asia Pacific, UK, and Europe. It goals to supply companies that embody high-quality colocation, connectivity, and 24/7 buyer help.
The surge in demand for AI and cloud companies has additional fuelled the necessity for knowledge centre growth, driving firms like STT GDC to supply infrastructure for resource-heavy operations.
David Luboff of KKR commented on the enduring attraction of digital infrastructure investments, attributing its attract to the continuing evolution of cloud computing and data-rich functions. He emphasised STT GDC’s place as a result of its diversified attain and improvement pipeline. With the brand new partnership, KKR goals to speed up STT GDC’s world progress trajectory utilizing its complete community and experience.
Arthur Lang from Singtel famous this acquisition aligns with the corporate’s progress imaginative and prescient, Singtel28. With a various geographical footprint, this transfer goals to strengthen Singtel’s place, creating new alternatives whereas sustaining potential for capital optimisation and progress. Underpinning ST Telemedia’s steerage until now, Lang conveyed confidence within the present management persevering with to scale.
ST Telemedia’s Stephen Miller mirrored on the expansion because the inception of STT GDC, highlighting the achievements through the years and expressing confidence within the new section of progress requiring substantial capital mobilisation. The partnership portends sustainable growth and maximisation of market attain.
KKR and Singtel’s funding in STT GDC marks the following stage within the firm’s improvement throughout the digital infrastructure sector.
