Singtel and KKR consortium to buy remaining stake in ST Telemedia Global Data Centres for S$6.6 billion
File photo of a data hall at one of ST Telemedia Global Data Centres' facilities. (Photo: ST Telemedia GDC)
SINGAPORE: Singtel said on Wednesday (Feb 4) that a consortium it is part of with private equity firm KKR will acquire an 81.7 per cent stake in Temasek Holdings' data centre business for S$6.6 billion (US$5.2 billion).
Singtel will invest about S$740 million in the transaction and will hold a 25 per cent stake in ST Telemedia Global Data Centres (STT GDC) following deal completion, according to a regulatory filing.
KKR will hold the remaining 75 per cent.
The deal values STT GDC, wholly owned by Temasek, at an enterprise value of S$13.8 billion and comes as global investment in the sector surges due to the rising demand for computing capacity, driven by artificial intelligence (AI).
Singtel Group Chief Financial Officer Arthur Lang said: "This acquisition is a significant step towards scaling our new growth engine in digital infrastructure ... STT GDC's diverse geographical footprint increases our exposure to new markets and makes the Singtel Group a stronger data centre player with global reach."
Reuters reported in November last year, citing sources, that KKR and Singtel were in advanced talks to buy more than 80 per cent of STT GDC in a deal that would give them full ownership.
KKR currently owns about 14 per cent of the firm, while Singtel, Singapore's biggest telecom operator, has a stake of more than 4 per cent. The rest is held by ST Telemedia.
KKR and Singtel first invested S$1.75 billion in the data centre firm in June 2024.
