SINGAPORE, Feb. 4 (GeokHub) — A consortium led by KKR and Singapore Telecommunications will pay S$6.6 billion ($5.2 billion) in cash to acquire full ownership of ST Telemedia Global Data Centres (STT GDC), in the largest data-centre transaction ever recorded in Southeast Asia.
The deal values STT GDC at an implied enterprise value of S$13.8 billion and reflects intensifying competition for data-centre capacity as demand surges from artificial intelligence and cloud computing workloads.
Under the agreement, the KKR-led group will acquire the remaining 82% stake from founding shareholder ST Telemedia, a Temasek Holdings subsidiary. Upon completion, KKR will hold a 75% stake while Singtel will own the remaining 25%.
A Landmark Transaction
The acquisition marks Singapore’s largest deal in four years and underscores the strategic importance of digital infrastructure across Asia Pacific. Shares of Singtel climbed to a record high following the announcement, outperforming the broader market.
Founded in 2014 and headquartered in Singapore, STT GDC operates a global data-centre platform with approximately 2.3 gigawatts of design capacity across Asia Pacific, Europe and the UK.
Strategic Impact
Industry analysts say the transaction strengthens Singtel’s digital infrastructure ambitions while positioning STT GDC to compete for large-scale hyperscaler and AI workloads.
The cash consideration will be paid in two tranches, with financing supported by roughly S$5 billion in secured debt facilities. Singtel will inject S$740 million in equity, funded internally, and said the deal will not materially impact its credit rating or dividend policy.
The transaction is expected to close in the second half of 2026, subject to regulatory approvals.
