A consortium led by American investment firm KKR is close to finalising an agreement to acquire ST Telemedia Global Data Centres (STT GDC), a Singapore-based data centre operator, according to individuals familiar with the negotiations, reported The Wall Street Journal.
The deal would value the company at over S$13bn ($10.2bn).
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
KKR is working on the acquisition alongside Singapore Telecommunications (Singtel).
Sources indicated that discussions are at an advanced stage, and an official announcement may be imminent.
ST Telemedia currently holds a stake exceeding 80% in STT GDC, while the KKR-led group owns the remainder after acquiring a minority interest in 2024 for around $1.3bn.
The parent company of ST Telemedia is Temasek Holdings, a state investment firm in Singapore.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataSTT GDC operates more than 100 data centres worldwide with a capacity totalling over 2.3GW, covering markets such as the UK, Germany, India, Thailand, South Korea, Indonesia, Japan, the Philippines, Malaysia and Vietnam.
The company also maintains partnerships related to artificial intelligence (AI) data centres.
Interest in Asian data infrastructure has increased as international firms and private equity investors respond to higher demand for computing, driven by the AI industry.
This trend has led to additional investments across Southeast Asia’s digital economy.
In recent developments, US-based Micron Technology began constructing a new wafer fabrication plant in Singapore as part of a planned $24bn investment over ten years.
Similarly, Microsoft announced last year it would invest $23bn in AI infrastructure, with much of the funding designated for projects in India. Amazon committed $5bn for new data centre operations in Taiwan.
Recent expansions in Malaysia and Indonesia further illustrate regional growth within digital sectors such as e-commerce and electronic payments.
For KKR, the potential acquisition would increase its footprint; the firm invested $800m in 2023 for a 20% stake in Singtel’s regional data centre business and manages assets exceeding $700bn.
