KKR and Singtel in Advanced Talks to Acquire Singapore Data Center Firm in $3.9 Billion Deal
- ByStartupStory | November 6, 2025
Global investment firm KKR & Co and Singapore Telecommunications (Singtel) are reportedly in advanced negotiations to acquire more than 80 percent of ST Telemedia Global Data Centres (STT GDC), a major player in Asia’s data center industry. The proposed transaction, valued at approximately $3.9 billion (around S$5 billion), would grant KKR and Singtel full ownership of STT GDC, consolidating their stake in one of the region’s largest data infrastructure providers.
Currently, KKR holds about 14 percent share in STT GDC, while Singtel owns over 4 percent. The remaining shares are held by ST Telemedia, a wholly owned subsidiary of Singapore’s sovereign wealth fund Temasek Holdings. A successful acquisition is expected to rank among Asia’s largest data center transactions, fueled by soaring demand for digital infrastructure driven by cloud computing growth and the rapid rise of artificial intelligence applications.
STT GDC operates data centers across multiple countries including Singapore, India, Indonesia, Japan, Philippines, South Korea, Thailand, Malaysia, Vietnam, the United Kingdom, Germany, and Italy. The company supports diverse sectors requiring scalable, secure, and high-performance data services, positioning itself strategically amidst increasing enterprise migration to cloud and AI-driven computing.
The $3.9 billion deal would enable KKR and Singtel to accelerate the expansion of data center capacity, focusing on high-growth markets within the ASEAN region and beyond. This expansion aligns with rising regional requirements for GPU-powered data centers for AI workloads, as well as enhancements in cloud infrastructure to support enterprises ranging from startups to multinational corporations.
KKR’s investment strategy focuses on critical telecommunications infrastructure with potential for long-term stable returns, leveraging its expertise in managing and scaling asset-intensive businesses. Singtel aims to benefit from KKR’s capital and operational capabilities to broaden its digital infrastructure footprint and maximize value from the rapidly growing data center market.
Market analysts note that Southeast Asia is poised for robust data center growth, expected to exceed global growth rates, driven by increasing internet penetration, e-commerce, and AI adoption. Singapore remains a premium data center hub but faces supply constraints, prompting growth in neighboring markets like Malaysia, Indonesia, and Thailand to meet overflow demand.
The expanded partnership between KKR and Singtel marks a significant move consolidating leadership in Asia’s digital infrastructure sector, enhancing their ability to meet growing enterprise demand for reliable, efficient, and climate-conscious data center solutions.
In summary, the potential acquisition of ST Telemedia Global Data Centres by KKR and Singtel for $3.9 billion reflects strategic confidence in Asia’s digital economy growth. It highlights the increasing value of data centers as foundational assets driving technological innovation, cloud migration, and AI readiness across the region.
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