Singapore Telecommunications (Singtel) is considering a public listing of a real estate investment trust (REIT) with data centers injected into it as part of a long-term funding option for its pivot towards digital infrastructure and technology services. The REIT, which will include other properties, is in addition to other longer-term funding structures such as capital partnerships, private funding, project debt, asset-recycling proceeds and its balance sheet, as stated in the telco’s FY2026 annual report.
As part of its pivot, Singtel plans to ramp up investment in data centers and sovereign artificial intelligence (AI) including increasing investment in its regional data centre platform Nxera and RE:AI, its sovereign AI cloud business.
In February, w.media reported that Singtel and global investment firm KKR have acquired ST Telemedia Global Data Centres (STT GDC), a data centre colocation services based in Singapore. The US$ 5.1 billion purchase would give KKR a 75 per cent stake and Singtel a 25 per cent stake in the firm upon completion. This would give Singtel a combined capacity of 2.8 gigawatts together with Nxera, upon completion which is expected by early second half of 2026.
The telco, together with KKR, plans to use STT GDC as a base for expanding its footprint beyond Southeast Asia.
Singtel affirms that both STT GDC and Nxera will operate independently, each pursuing different market strategies. “While both platforms will be run independently, the synergies are obvious. They also give us optionalities to pursue country-specific strategies and to unlock significant value across both platforms…,” said Chairman Lee Theng Kiat and Group CEO Yuen Kuan Moon in the Chairman and GCEO Message.
Capital expenditure is expected to rise to about S$3 billion in the year ending March 2027 from S$2.5 billion a year earlier. About S$1.2 billion will be growth capital, allocated mainly for Nxera and RE:AI, with around S$700 million of that amount fully funded.
Nxera’s funding will come mainly from Singtel’s capital partnership with KKR & Co., while investment in RE:AI will be supported by customer contracts which would reduce the risk of holding unused GPUs while supporting recurring revenue.
Connectivity will still remain fundamental to Singtel’s business because AI and other digital services still depend on secure and resilient networks. “Connectivity will remain a fundamental part of who we are. Networks will always matter because every digital service, including AI, depends on fast, secure and resilient infrastructure,” said Group CEO Yuen.
Telecommunications service will however form a part of a broader business spanning data centers, cloud infrastructure, enterprise technology and AI services. “Together with our digital services arm, NCS’ focus on AI growth across key sectors including homeland defence and security, healthcare, transportation and telecoms, this cements our pivot from a traditional telecom business into a high-growth digital
infrastructure and services company,” as stated in the Chairman and GCEO Message.