KKR and Singtel Invest S$1.75 Billion in ST Telemedia Global Data Centres

ST Telemedia Global Data Centres (STT GDC), a leading data centre colocation services provider, announced a landmark investment of S$1.75 billion (~US$1.3 billion) from a consortium led by KKR and Singtel. This deal represents the largest digital infrastructure investment in Southeast Asia in 2024, highlighting the booming demand for data centres fueled by the rise of AI and digitalisation.

The investment, structured via Redeemable Preference Shares (RPS) with detachable warrants, will see the consortium inject an initial S$1.75 billion. Upon full exercise of the warrants, an additional S$1.24 billion (~US$920 million) will be invested, bringing the total potential investment to nearly S$3 billion.

Selected through an independent competitive process, the KKR-Singtel consortium was chosen for its expertise, financial strength, and strategic vision. The funds will bolster STT GDC’s market position and support its international expansion through both organic and inorganic growth strategies. Despite this significant investment, ST Telemedia, a subsidiary of Singapore’s Temasek, will retain majority ownership of STT GDC.

Bruno Lopez, President & Group CEO of STT GDC, expressed enthusiasm about the partnership, stating, “With the industry experiencing unprecedented cloud and AI-led growth, this strategic partnership with KKR and Singtel will be a significant catalyst for STT GDC’s next chapter of growth as a leader in the digital infrastructure industry.”

David Luboff, Co-Head of KKR Asia Pacific and Head of Asia Pacific Infrastructure, emphasized the critical role of data centres in the digital economy, noting that KKR’s investment from its Asia Pacific Infrastructure Investors II Fund aligns with its commitment to enhancing digital infrastructure in the region.

Arthur Lang, Group CFO of Singtel, highlighted the investment’s alignment with Singtel’s strategy to scale its digital infrastructure business, noting the synergy with KKR, which had previously invested in Singtel’s regional data centre arm, Nxera.

Founded in 2014 and headquartered in Singapore, STT GDC operates over 95 data centres across 11 geographies, providing essential services such as colocation, connectivity, and 24/7 support. The company’s data centres have a combined capacity of more than 1.7GW of IT load, making it one of the world’s fastest-growing data centre providers.

The deal’s completion is pending regulatory approvals and other conditions. Legal advisement for STT GDC was provided by Latham & Watkins.

This significant investment underscores the growing importance of digital infrastructure in the Asia Pacific, as nations and corporations respond to the digital transformation and AI revolution.