KKR and Singtel to take full possession of knowledge heart agency STT GDC for about $5 billion – Imperial Wire

Personal fairness agency KKR and Singapore Telecommunications will purchase the remaining 82% stake in knowledge heart operator ST Telemedia International Information Centres for six.6 billion Singapore {dollars} ($5.1 billion), KKR mentioned in a press release on Wednesday.

The deal pegs STT GDC’s enterprise worth at S$13.8 billion and comes at a time when there was a soar in knowledge heart demand led by the growth in synthetic intelligence.

Following completion, KKR will maintain a 75% stake in STT GDC, whereas Singtel will personal the remaining 25%, bearing in mind the conversion of current choice shares held by each buyers.

KKR mentioned the deal represents its largest infrastructure funding in Asia Pacific so far, as world funding in knowledge facilities accelerates on rising want for cloud computing and synthetic intelligence workloads.

Singtel shares rose nearly 2% to hit a document excessive earlier than paring positive aspects, and have been final buying and selling 0.41% increased. KKR shares, which misplaced practically 10% on Tuesday, gained 0.5% in after hours buying and selling.

International knowledge facilities’ dealmaking hit a contemporary document final yr, pushed by a rush to construct out the infrastructure required for energy-intensive AI workloads, with S&P International reporting that over $61 billion had flowed into the info heart market, up from $60.8 billion final yr.

“Digital infrastructure stays one of the compelling long-term funding themes globally,” mentioned David Luboff, co-head of KKR Asia Pacific and head of Asia Pacific infrastructure, citing STT GDC’s diversified footprint and improvement pipeline.

Citi acted because the lead monetary advisor to KKR and Singtel in what marks the most important M&A deal in Singapore within the final 4 years, knowledge from financial institution confirmed.

Based in 2014 and headquartered in Singapore, STT GDC operates knowledge facilities throughout 12 markets in Asia Pacific, the UK and Europe, with 2.3 gigawatts of design capability. The corporate offers colocation, connectivity and assist companies to hyperscalers and enterprise prospects.

KKR and Singtel first invested in ST Telemedia International Information Centres in June 2024, placing in $1.75 billion Singapore {dollars} for a minority stake.

“STT GDC’s various geographical footprint will increase our publicity to new markets and makes the Singtel Group a stronger knowledge centre participant with world attain,” mentioned Arthur Lang, group chief monetary officer at Singtel.