According to people familiar with the matter, a consortium led by KKR is nearing an agreement to acquire a Singapore-based global data center provider, in a deal that would value the company at more than S$13 billion. The sources revealed that the global investment firm is set to acquire ST Telemedia Global Data Centres from its parent company. KKR is conducting this acquisition in partnership with Singapore telecommunications giant Singtel. The negotiations have reached a critical stage, and an announcement could be made soon. In a Sunday filing with the Singapore Exchange, Singtel stated, "Although these discussions are at an advanced stage, there is no assurance that such discussions will result in any definitive or binding agreement." The parent company of ST Telemedia currently holds over 80% of STT GDC, with the remaining stake held by the KKR-led consortium. That consortium acquired this minority stake in 2024 for approximately $1.3 billion. The parent company of ST Telemedia is Singapore state-owned investment firm Temasek Holdings. KKR's planned acquisition comes as foreign firms, including private equity companies, are scrambling to buy data centers, fueled by an AI boom that is driving a massive surge in demand for computing power. Asia has become a primary beneficiary of this investment wave. Earlier this week, U.S.-based Micron Technology announced the groundbreaking of an advanced wafer fabrication plant in Singapore, a project involving a planned investment of $24 billion over the next decade. Late last year, Microsoft said it would invest $23 billion (mostly in India) in AI-related infrastructure, while Amazon announced a $5 billion investment for data centers in Taiwan. Similar investment plans have been announced in Southeast Asia, including in Malaysia and Indonesia, driving a broad expansion of the region's digital economy, encompassing digital payments and e-commerce. STT GDC has a partnership with Nvidia in the field of AI-ready data centers, and its operations span the UK, Germany, India, Thailand, South Korea, Indonesia, Japan, the Philippines, Malaysia, and Vietnam. According to information on its official website, the Singapore-headquartered company owns and operates more than 100 data centers globally, with a total capacity exceeding 2.3 gigawatts. For KKR, this acquisition would significantly strengthen its business footprint in the region. In 2023, KKR, which manages assets exceeding $700 billion, invested $800 million to acquire a 20% stake in Singtel's regional data center business.
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