KKR-led consortium acquires ST Telemedia in S$6.6bn transaction

April 2026 | DEALFRONT | PRIVATE EQUITY & VENTURE CAPITAL

Financier Worldwide Magazine

April 2026 Issue

Marking one of the largest digital infrastructure transactions in Southeast Asia, a consortium comprising global investment firm KKR and Singapore Telecommunications (Singtel) is to take full control of ST Telemedia Global Data Centres (STT GDC) in a transaction valued at S$6.6bn for the remaining 82 percent stake owned by ST Telemedia. The deal implies an enterprise value overall of about S$13.8bn for STT GDC.

Upon completion and the conversion of existing redeemable preference shares, KKR and Singtel will hold stakes of 75 percent and 25 percent respectively in STT GDC. Closing is expected by the early second half of 2026, subject to customary regulatory approvals.

The purchase price will be paid in two equal tranches, with half due at closing and the balance roughly a year later. The acquisition vehicle has secured about S$5bn in debt facilities, while Singtel has committed S$740m in equity from internal cash without altering its dividend or credit stance. Citi and Bank of America are advising KKR and Singtel, while JP Morgan is acting as sole financial adviser to ST Telemedia.

KKR and Singtel first invested in STT GDC in June 2024 via S$1.75bn of redeemable preference shares and warrants, with a view to further investment upon exercising the warrants. Since then, STT GDC has expanded its development pipeline from 1.4GW to more than 1.7GW and now has 2.3GW of design capacity across 12 markets in Asia Pacific, the UK and Europe. The expansion reflects sustained demand from hyperscale operators seeking reliable and energy‑efficient capacity, as well as growing interest from enterprises pursuing hybrid cloud strategies.

“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,” said David Luboff, co-head of KKR Asia Pacific and head of Asia Pacific infrastructure at KKR. “STT GDC is well-positioned within this landscape, with a diversified footprint, strong development pipeline and a leadership team with a clear vision for global scale.”

Established in 2014 and headquartered in Singapore, STT GDC is among the world’s fastest-growing data centre platforms. It provides colocation, connectivity and 24-hour support services to hyperscalers, cloud providers and enterprises.

“This transaction represents a rare opportunity to further support a high-quality platform and deepen our strategic partnership with Singtel,” continued Mr Luboff. “We look forward to deploying our global network and deep digital infrastructure expertise to help STT GDC accelerate its next phase of sustainable, international growth.”

As demand for artificial intelligence and cloud services accelerates, fuelling the need for new facilities to support resource‑intensive workloads, the requirement for secure, scalable infrastructure such as that provided by STT GDC continues to rise. The consortium has indicated that future development will emphasise energy‑efficient designs, renewable power procurement and advanced cooling technologies as sustainability expectations increase across global digital infrastructure markets.

“With the consortium’s global expertise, regional networks, financial strength and, most importantly, our shared ambition, STT GDC is poised to capture the next wave of significant growth in cloud and AI demand,” said Bruno Lopez, president and group chief executive of STT GDC. “Coupled with our proven leadership and exceptional teams across all markets, we are well-positioned to shape the future of sustainable digital infrastructure.”

The transaction is expected to close by early second half of 2026, subject to customary closing conditions, including regulatory approvals.

“As a long-term, strategic shareholder, we have steadfastly supported STT GDC’s development and transformation,” said Stephen Miller, president and group chief executive of ST Telemedia. “This transaction demonstrates our strategic stewardship while ensuring STT GDC’s ongoing sustainable growth with an optimal partner.”

Fraser Tennant