A consortium led by KKR, a leading global investment firm, and Singtel, one of Asia’s renowned communications technology groups, will invest S$1.75 billion (approximately US$1.3 billion) in ST Telemedia Global Data Centres (STT GDC), a major data centre colocation services provider in the Asia Pacific region.
W.Media had previously reported that SingTel and KKR were leading the race to acquire a significant stake in ST Telemedia Global Data Centres (STT GDC). This transaction marks one of the largest digital infrastructure investments in Southeast Asia to date in 2024.
According to a press release, the transaction comprises an initial S$1.75 billion (~US$1.3 billion) investment by the Consortium via Redeemable Preference Shares (RPS), with detachable warrants. Upon exercise of the warrants in full, the Consortium will invest an additional S$1.24 billion (~US$920 million). The proceeds of the investment will be used to further advance STT GDC’s position in the markets it operates in, and to support its continuing international expansion and growth plans through organic and inorganic strategies.
Headquartered in Singapore, STT GDC has more than 95 data centres across 11 geographies and points of presence in over 20 major business markets. Today, its data centre portfolio has a total combined capacity of more than 1.7 GW of IT load.
Singtel is a provider of connectivity, digital services and digital infrastructure, with data centres a critical part of the business. In September 2023, KKR acquired a 20 percent stake in Nxera, Singtel’s regional data centre business.
Bruno Lopez, President & Group CEO of STT GDC, said, “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.”
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.”
Arthur Lang, Group Chief Financial Officer of Singtel, said, “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.”
Stephen Miller, President & Group CEO of ST Telemedia, said, “Since founding STT GDC, we have steadfastly supported its evolution and growth. Today’s announcement marks another important milestone for STT GDC with the introduction of two new marquee investors to enhance its global growth strategies. As a strategic investor and shareholder, STT looks forward to working closely with our new partners to propel STT GDC in its exciting next phase of global growth.”
The closing of the transaction is subject to the satisfaction of certain conditions precedent including regulatory approvals.
