KKR and Singtel to invest $1.75 billion in ST Telemedia Global Data Centres.
Takeaway Points
- KKR and Singtel will invest $1.75 billion in ST Telemedia Global Data Centres.
- The transaction marks the largest digital infrastructure investment in Southeast Asia to date in 2024.
- The consortium was selected based on an independent competitive process by STT and STT GDC.
KKR and Singtel Investment in STT GDC
Singtel, Asia’s leading communications technology group, announced on Tuesday that it has signed an agreement with ST Telemedia Global Data Centres (‘STT GDC’ or the ‘Company’), a leading data centre colocation services provider, with KKR, a leading global investment firm.
According to the report, the KKR-led consortium of KKR and Singtel will invest $1.75 billion (US$1.3 billion) in STT GDC, making it the largest digital infrastructure investment in Southeast Asia to date in 2024.
Mr. Arthur Lang, Group Chief Financial Officer of Singtel, said that they see digital infrastructure, like data centres, as an asset and compelling investment with the rise of digitalization and AI adoption around the world.
“We see digital infrastructure, particularly data centres, as a growth asset and compelling investment with the remarkable rise of the sector driven by rapid digitalisation and AI adoption around the world. Given our joint expertise in digital infrastructure, we are pleased to participate in this fundraising with KKR, deepening our relationship since its investment in our regional data centre arm Nxera last September. This is a solid opportunity for Singtel to gain exposure to an established platform with a footprint in high-quality data centre markets and aligns with our Singtel28 strategy to further scale our digital infrastructure business in collaboration with like-minded partners,” Arthur said.
Mr. Bruno Lopez, President and Group CEO of STT GDC, said in a comment that they are excited to welcome KKR and Singtel in the digital infrastructure space into the STT GDC group since its establishment 10 years ago.
“We are thrilled to welcome KKR and Singtel, two blue-chip investors in the digital infrastructure space into the STT GDC group. Since our inception 10 years ago, STT GDC has developed into a leading data centre provider with a significant footprint in Asia, UK and Europe, supporting the growth of the world’s largest cloud and enterprise customers. 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,” Bruno said.
Mr David Luboff, Co-Head of KKR Asia Pacific and Head of Asia Pacific Infrastructure, KKR, said, “Data centres serve as an important backbone of the digital infrastructure that enables an increasingly digital economy and many critical industries globally. Our investment in STT GDC is a rare opportunity to support the growth of a leading data centre platform with a terrific track record of growth and significant potential, whilst deepening our existing collaboration with Singtel. Together, we look forward to leveraging our global network and expertise investing in digital infrastructure to power STT GDC’s continued success and international expansion, and to help it to achieve its next phase of transformation.”
How was the consortium selected?
Asia’s leading communications technology group said that the consortium was selected based on an independent competitive process by STT and STT GDC. They considered factors such as the consortium’s collective expertise and track record, financial strength, and proposed business strategy. Following the transaction, ST Telemedia continues to be the majority shareholder of STT GDC.
The $1.75 billion investment by KKR and Singtel in ST Telemedia Global Data Centres not only strengthens Singapore’s position as a leading digital hub but also underscores the strategic importance of robust data infrastructure in enabling businesses to thrive in an increasingly interconnected world. This partnership not only signifies a significant financial commitment but also symbolizes a shared vision for the future of data management, innovation, and economic growth in Asia Pacific and beyond.
