KKR and Singtel Seal $5.1 Billion Deal for Full Control of STT GDC
February 3, 2026
In a landmark transaction underscoring the intense investor appetite for digital infrastructure, global investment firm KKR and Singapore Telecommunications (Singtel) have agreed to acquire the remaining 82% stake they did not already own in ST Telemedia Global Data Centres (STT GDC). The deal, valued at S$6.6 billion (approximately $5.1 billion), assigns the data center operator a total enterprise value of S$13.8 billion and marks the largest merger and acquisition deal in Singapore in four years.
The acquisition comes amid a surge in global data center demand, primarily fueled by the exponential growth of artificial intelligence (AI) and cloud computing, which require massive, power-intensive computing infrastructure. Last year, dealmaking in the sector hit a fresh record, with over $61 billion flowing into the market, according to S&P Global.
Under the terms finalized this week, KKR will emerge with a 75% controlling stake in STT GDC, while Singtel will hold 25%, following the conversion of existing preference shares held by both parties. This investment represents KKR's largest infrastructure commitment in the Asia-Pacific region to date. The market reacted positively, with Singtel's shares briefly touching a record high.
STT GDC, founded in 2014 and headquartered in Singapore, is a major player with a significant development pipeline. It operates across 12 markets in Asia Pacific, the United Kingdom, and Europe, boasting a substantial design capacity of 2.3 gigawatts. The company provides critical colocation and connectivity services to hyperscale cloud providers and enterprise customers. KKR and Singtel first entered as minority investors in June 2024 with a $1.75 billion commitment.
Industry executives highlighted the strategic rationale behind the full takeover. "Digital infrastructure remains one of the most compelling long-term investment themes globally," said David Luboff, Co-Head of KKR Asia Pacific and Head of Asia Pacific Infrastructure. He cited STT GDC's diversified footprint and growth potential as key drivers.
For Singtel, the move solidifies its position in the competitive data center landscape. "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," stated Arthur Lang, Singtel's Group Chief Financial Officer. The deal, for which Citi acted as lead financial advisor, is poised to close following regulatory approvals.
Source: cnbc
