A consortium led by KKR and comprising Singtel has agreed to acquire the remaining 82% stake in ST Telemedia Global Data Centres (STT GDC) from founding shareholder ST Telemedia, for S$6.6bn ($5.1bn).

The deal values the data centre company at an enterprise value of approximately S$13.8bn ($10.9bn), which includes existing leverage and capital expenditure commitments.

Following completion of the transaction, KKR will hold a 75% stake, and Singtel will own 25% of STT GDC, reflecting the conversion of both parties’ existing redeemable preference shares in the company.

The transaction follows an initial investment in 2024, when KKR and Singtel contributed S$1.75bn through preference shares and warrants into STT GDC, marking what was then Southeast Asia’s largest digital infrastructure investment.

KKR Asia Pacific co-head David Luboff said: “This transaction represents a rare opportunity to further support a high-quality platform and deepen our strategic partnership with Singtel.

“We look forward to deploying KKR’s global network and deep digital infrastructure expertise to help STT GDC accelerate its next phase of sustainable, international growth.”

Since this investment, STT GDC has increased its pipeline capacity from 1.4GW to over 1.7GW.

Singtel group chief financial officer Arthur Lang said: “This acquisition is a significant step towards scaling our new growth engine in digital infrastructure as mapped out in our Singtel28 growth plan.

“We will continue to exercise discipline in capital allocation and evaluate capital recycling alternatives to fund growth and maintain balance sheet efficiency. Our dividend and growth plans under Singtel28 remain intact.”

Founded in 2014 by ST Telemedia and headquartered in Singapore, STT GDC operates in 12 major markets across Asia Pacific, the UK and Europe, with a total design capacity of 2.3GW.

The company offers colocation, connectivity, and support services to clients handling AI and cloud workloads that require significant data processing resources.

STT GDC president and group CEO Bruno Lopez said: “This expanded investment from KKR and Singtel underscores their confidence in the quality of STT GDC’s business and its growth trajectory and will further accelerate our mission to deliver the critical infrastructure powering tomorrow’s digital economy.

“With the consortium’s global expertise, regional networks, financial strength and, most importantly, our shared ambition, STT GDC is poised to scale rapidly and capture the next wave of significant growth in cloud and AI demand.”

Completion of the acquisition remains subject to regulatory approvals and standard closing conditions.

The parties expect to finalise the transaction by early in the second half of 2026.