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KKR-Singtel Consortium Completes $10.9B Takeover of Singapore's STT GDC

By: IDCNOVARegion: Southeast Asia
A consortium led by U.S.-based investment firm KKR, together with Singapore's Singtel, has completed its acquisition of STT GDC, taking full ownership of the Singapore-headquartered data-center operator. The deal, announced in a statement on Wednesday, marks one of the largest leveraged buyouts in the Asian digital infrastructure sector to date.

The transaction is valued at S$13.8 billion ($10.9 billion), reflecting the rapid appreciation of data-center assets amid surging demand for cloud and AI services. Under the terms outlined by KKR in February, the consortium acquired the remaining 82 percent stake in STT GDC from founding shareholder ST Telemedia for a total consideration of S$6.6 billion. Following completion, KKR holds a 75 percent interest in the company, while Singtel retains 25 percent.

The consortium's involvement with STT GDC dates back to 2024, when it first invested S$1.75 billion through preference shares and warrants. Since then, the company's development pipeline has expanded significantly, growing from 1.4 gigawatts to more than 1.7 gigawatts, underscoring the accelerating pace of data-center buildout across the region.

STT GDC said the completion of the takeover provides it with long-term capital and greater financial flexibility to support its growth ambitions, while confirming that its leadership team, operating approach, and strategy remain unchanged. The company has seen robust operational momentum, with capacity expanding 25 percent since the end of 2025 to reach 780 megawatts, while contracted capacity has grown 50 percent, driven by demand from hyperscalers, cloud providers, AI customers, and enterprise clients.

The company also said it has secured close to 2 gigawatts of powered land for projects currently under construction and in its pipeline. Founded in 2014 and based in Singapore, STT GDC offers data-center colocation, connectivity, and support services across Asia, Britain, and Europe, serving hyperscale, cloud, and enterprise customers. It currently operates 34 data centers across 10 Indian cities with more than 613 megawatts of capacity, is advancing over 360 megawatts of pipeline at its Jakarta campus in Indonesia, and was selected to develop 50 megawatts of capacity in Singapore.

Industry observers view the deal as a bellwether for continued institutional appetite in digital infrastructure, particularly in fast-growing Asian markets where cloud adoption and AI workloads are driving unprecedented demand for reliable, scalable data-center capacity. The transaction also signals a deeper strategic alignment between global investment capital and regional telecommunications operators seeking to monetize their digital infrastructure assets.