KKR and Singtel Near $10 Billion Deal for STT GDC Data Centres

KKR, the US investment firm, and Singapore telecom giant Singtel are in the final stages of a deal to buy full control of ST Telemedia Global Data Centres, or STT GDC. The agreement would value the company at S$13.8 billion, or roughly $10.2 billion, and hand over ownership from its current majority holder, Singapore state-backed ST Telemedia. Talks have moved quickly since rumours first surfaced last year, driven by the fast growth in demand for data centres across Asia.

Background

STT GDC runs about 100 data centres in more than 20 countries, from Singapore and Malaysia to India, the UK, Germany, and Italy. The company handles storage and processing for big tech firms and others needing space for servers and cloud services. Its parent, ST Telemedia, is fully owned by Temasek Holdings, Singapore's main investment arm. Temasek also holds a big stake in Singtel, linking the two companies closely.

KKR and Singtel already own parts of STT GDC. Back in June 2024, they bought in together for up to $2.2 billion, giving KKR a 14.1% share and Singtel 4.2%. That left ST Telemedia with around 82%. This new deal would buy out that remaining stake, making the buyers full owners. Reports of takeover talks started in mid-2025, picked up steam in November, and now look set to close soon.

The push comes as data centres boom in Southeast Asia. Countries like Malaysia and Thailand are building new sites to meet needs from artificial intelligence and cloud computing. STT GDC itself kicked off work on a 16-megawatt centre in Johor, Malaysia, last year. It should be ready by late 2026. They also have a joint project in Cyberjaya, near Kuala Lumpur, for another 20-megawatt site.

Singtel has been expanding its own data centre business. It renamed its Digital InfraCo unit to Nxera in 2024 and plans to reach 200 megawatts of capacity in the region by 2027. A partnership with Nvidia is helping that effort in places like Singapore, Malaysia, Thailand, and Indonesia.

Key Details

The deal values STT GDC at over S$13 billion, including debt. That puts it among the biggest mergers in Asia Pacific, second only to Blackstone's $16.1 billion purchase of Airtrunk in 2024. Singtel confirmed on Sunday that talks are advanced but added there is no guarantee of a final agreement.

"Singtel, as part of a consortium, continues to have discussions in relation to STT GDC. While these discussions are at an advanced stage, there is no certainty that such discussions will lead to any definitive or binding agreement."

• Singtel statement

KKR brings global muscle to the table. The firm already runs about 155 data centres with plans for 12 gigawatts more capacity. It recently put $1.5 billion into Global Technical Realty, which builds custom sites for giants like Amazon, Microsoft, and Google.

Possible New Partners

Singapore's GIC and Abu Dhabi's Mubadala are in talks to join as smaller investors. Their role would be minority, backing the main KKR-Singtel push. GIC, another Singapore state fund, and Mubadala have not commented yet. If they sign on, it would spread the cost and tie more government money to the data centre growth.

Singtel might pay around S$2 billion for its share, based on past investment ratios. It could use cash from selling Airtel shares in India last November for S$1.5 billion, plus other funds raised recently. Singtel's stock rose 2% on Monday after the news, trading at $4.69 with heavy volume.

Funding and Past Talks

Back in November 2025, reports said KKR and Singtel were lining up a S$5 billion bank loan for the bid. That fits with the current valuation. KKR declined to comment, as did STT GDC and ST Telemedia.

What This Means

Full ownership would turn Singtel into a top data centre player in the region right away. Pairing STT GDC's network with Nxera's plans would create a strong base for AI and cloud services. Analysts see this as a smart move with AI driving more demand for power-hungry servers.

For KKR, it adds a key Asian asset to its global portfolio. The firm has been buying up data sites worldwide to ride the wave of digital growth. Southeast Asia's market is hot because land and power are available, and tech firms want to spread out from the US and China.

The deal could close as early as this week, though talks might drag if details snag. Once done, STT GDC would operate under the new owners, likely speeding up builds in Malaysia and beyond. This fits a pattern of big money flowing into data infrastructure as companies race to handle exploding data needs.

Temasek would cash out its big stake, freeing funds for other investments while keeping ties through Singtel. The shift highlights how private firms like KKR are teaming with locals to grab prime assets in fast-growing markets. Data centres now power everything from social media to AI models, making them prime targets for investors.

If GIC and Mubadala join, it signals even stronger backing from governments betting on digital hubs. Malaysia's Johor site alone shows the regional focus, pulling in jobs and tech. Singtel's role grows its reach without starting from scratch, using STT GDC's ready network.