KKR, Singtel Complete $10.9B STT GDC Buyout
A KKR and Singtel-led consortium has bought ST Telemedia Global Data Centres in a S$13.8 billion deal, supported by a S$5 billion green loan.
KKR and Singtel have completed their S$13.8 billion ($10.9 billion) acquisition of ST Telemedia Global Data Centres. The consortium paid S$6.6 billion for the remaining 82 percent stake held by Temasek-owned ST Telemedia, giving KKR a 75 percent controlling share and Singtel 25 percent.
The buyout is supported by a S$5 billion ($3.9 billion) sustainability-linked loan. DBS, OCBC, and UOB served as mandated lead arrangers for the facility. Its terms are tied to STT GDC increasing its use of renewable energy and the proportion of green data centres in its portfolio.
David Luboff, KKR's co-head of Asia Pacific and head of infrastructure for the region, commented on the deal. "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," he said.
Portfolio and Expansion
STT GDC operates more than 100 data centres across 20 markets in Asia Pacific and Europe. It has a design capacity of 2.3 gigawatts. The company's development pipeline has grown to over 1.7GW, up from 1.4GW when KKR and Singtel first invested S$1.75 billion in 2024.
Recent expansion moves are detailed below.
| Location | Project Detail | Capacity |
|---|---|---|
| Singapore | Approved new capacity | 50 MW |
| Singapore | Six operating facilities | >110 MW |
| South Korea (Seoul) | STT Seoul 1 (JV with Hyosung) | 30 MW |
| Indonesia (Jakarta) | STT Jakarta 2 (opened) | 24 MW |
| Indonesia (Greater Jakarta) | Two new facilities (ground broken) | 40 MW each |
| India (Chennai) | First phase opened | 7.2 MW |
| India (Chennai) | Full campus planned | 45 MW |
| India (Mumbai) | Initial facility (ground broken March) | 50 MW |
| Japan (Tokyo) | STT Tokyo 1 (opened last year) | 32 MW |
In Singapore, a planned project on Jurong Island must power over half its capacity from green energy. This is required under the city-state's latest data centre allocation programme.
STT GDC India operates or is developing 30 data centres across 10 cities. It has more than 400MW of critical IT load capacity. The local unit has outlined a potential initial public offering for the first half of 2027.
The Mumbai-area campus is scalable to 400MW. The initial 50MW facility is backed by an investment commitment of INR 50 billion ($541 million).
Strategic Alliances
The deal deepens an existing infrastructure partnership. KKR already owns 20 percent of Singtel's regional data centre arm, Nxera, after a commitment of up to S$1.1 billion in 2023. Nxera's operational capacity across Southeast Asia is expected to more than double from over 200MW this year to more than 400MW in the medium term.
Singtel has described the acquisition as a way to expand its digital infrastructure growth into markets beyond Nxera's footprint. It also creates opportunities for capital recycling. The transaction shifts control from Temasek-owned ST Telemedia to KKR. Temasek retains indirect exposure through its majority stake in Singtel.
Market Position and Future Outlook
KKR further widened its regional data centre presence last week. It agreed to acquire 29 percent of SK Horizon, a unit being carved out of South Korea's SK Broadband. This platform encompasses eight operating data centres and facilities under construction, totaling 318MW of existing and planned capacity.
Together with the STT Seoul 1 facility, this gives KKR interests in two separate Korean operators. KKR's Asia Pacific infrastructure business had grown to $16 billion in assets under management as of September 2025. The STT GDC takeover hands the firm control of one of the region's largest platforms for capturing AI and cloud demand.
