Should it go through, the deal would be one of Asia’s largest data-centre transactions
[SINGAPORE] Temasek-backed data-centre operator ST Telemedia Global Data Centres (STT GDC) is reportedly close to being bought by a consortium led by private equity firm KKR and local telco Singtel .
The deal has also attracted the interest of parties such as Singapore’s GIC and Abu Dhabi’s Mubadala, which have reportedly come aboard as minority investors.
Singtel confirmed on Feb 1 that discussions over the deal are at an “advanced stage” but said there is no certainty of a definitive deal.
Should it go through, the deal – which values STT GDC at about US$10.2 billion – would be one of Asia’s largest data-centre transactions.
The Business Times takes a look at what STT GDC is, what the deal could mean and why such big names have become involved.
Over 100 data centres
Set up in 2014, STT GDC describes itself as one of the largest data-centre operators in Asia. It manages 100 such facilities in 20 markets, including Singapore, Malaysia and India in Asia, as well as the UK, Germany and Italy through its Virtus brand in Europe.
Navigate Asia in
a new global order
Get the insights delivered to your inbox.
According to its website, the group has a total IT load capacity of more than 1.7 gigawatts (GW), which is around the data-centre capacity in the whole of India. In Singapore alone, STT GDC operates six facilities with over 110 megawatts (MW) of capacity.
ST Telemedia, which is wholly owned by Temasek, owns about 82 per cent of STT GDC. KKR holds roughly 14.1 per cent and Singtel – majority-owned by Temasek – holds about 4.2 per cent.
In June 2024, STT GDC, which offers colocation, connectivity and support services, raised S$1.75 billion from a KKR-led consortium with Singtel. The telco had invested about S$400 million then.
Earlier that year, the data-centre operator issued S$500 million in sustainability-linked perpetual securities with a coupon of 5.7 per cent.
The latest acquisition could see Singtel fork out more than S$2 billion for STT GDC, based on the reported valuation and assuming the previous investment ratio is maintained, said RHB in a note on Monday (Feb 2).
The deal is set to be the biggest leveraged data-centre buyout deal since Blackstone’s A$24 billion (S$21 billion) acquisition of Australia’s AirTrunk in 2024.
Impact of the deal
For STT GDC, the deal is about unlocking capital.
As the data-centre operator’s head of investments, Michael Tanujaya, noted in late 2024, large private equity firms are ideal partners as they have been “sitting on dry powder for the longest time” and are now ready to deploy it into digital infrastructure.
The term “dry powder” refers to money that investors have pledged but not yet used. KKR reported a record US$126 billion in unspent capital in its third-quarter earnings in November 2025.
With KKR stepping up as a major shareholder, STT GDC will gain access to deeper private equity pockets, which are particularly useful in energy procurement, a critical bottleneck for data centres everywhere.
RHB also viewed the potential deal positively for Singtel, noting that it would help the telco strengthen its regional data-centre business.
“We are positive on this development as it would transform Singtel into a data-centre powerhouse with a global footprint,” said RHB.
“The transaction resonates well with management’s focus on growing the RDC business under the digital infrastructure company pillar – a key growth engine.”
The deal could be funded through Singtel’s S$1.5 billion in proceeds from the November 2025 disposal of a 0.8 per cent stake in Airtel and S$4.1 billion from other recycled capital, RHB added.
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
