Singtel Sells $773 Million Stake in Thai Energy Firm to Fuel AI and Data Center Expansion
June 23, 2026
Singtel Sells $773 Million Stake in Thai Energy Firm to Fuel AI and Data Center Expansion
Singtel, Southeast Asia’s largest telecommunications operator, has sold a 2.8% stake in Gulf Development, Thailand’s largest energy company, for approximately S$1 billion ($772.9 million). The move is part of a broader strategy to raise capital for aggressive investments in artificial intelligence and data center infrastructure, signaling a significant shift in the company’s asset allocation toward high-growth digital sectors.
The stake was sold directly to institutional investors and is expected to generate an equity gain of about S$140 million, Singtel said in a statement on Tuesday. Following the transaction, Singtel retains a 4.95% stake in Gulf Development, valued at roughly S$1.8 billion. The divestment underscores Singtel’s disciplined approach to capital management, as the company seeks to recycle assets into areas with stronger long-term growth potential.
“This divestment underscores Singtel’s concerted efforts to optimize our portfolio as we continue our disciplined approach to capital management,” said Arthur Lang, Singtel’s group chief financial officer. Lang emphasized that the partnership with Gulf Development remains robust and that Thailand continues to be an important market for the company, despite the reduced stake.
The sale comes as Singtel ramps up its capital expenditure, which is expected to reach around S$3 billion in the current fiscal year, up from S$2.5 billion a year earlier. During an interview with CNBC’s “Squawk Box Asia” in May, Singtel CEO Yuen Kuan Moon revealed that S$1.2 billion of that spending is earmarked for growth initiatives, specifically in data centers and AI. “1.2 billion are really earmarked for growth into data center into AI, which is our GPU as a service for the region, and in particular providing sovereign AI services for Singapore,” Moon said.
The divestment reflects a broader industry trend where telecom operators are monetizing traditional infrastructure stakes to fund next-generation digital capabilities. By channeling proceeds into AI and data center services, Singtel aims to position itself as a regional hub for sovereign AI offerings, particularly in Singapore, where demand for secure, localized computing power is rising. Singtel’s shares last traded 1.38% lower at S$4.30 on the Singapore Exchange.
Source: cnbc
