From STT GDC website
SINGAPORE: GIC Pte and Mubadala Investment Co are in talks to join KKR & Co and Singapore Telecommunications Ltd (Singtel) in their potential purchase of data centre operator STT GDC Pte, people familiar with the matter say, in what could be one of the biggest digital infrastructure deals in recent months.
The sovereign wealth funds from Singapore and Abu Dhabi are set to back the KKR-led transaction as minority co-investors, the people said, asking not to be identified because the deliberations are private.
A potential deal may value STT GDC at more than US$10bil including debt, the people said. The firms are hammering out details of a transaction that could be announced as soon as this week, they said.
Dow Jones reported on Sunday that a KKR-led consortium including Singtel was nearing a deal for STT GDC. Singtel said in an exchange filing following the report that it is in advanced discussions regarding the data centre company but there’s no certainty of any definitive or binding agreement.
A representative for Mubadala declined to comment. KKR, GIC and ST Telemedia didn’t respond to requests for comment outside of regular business hours.
KKR and Singtel have been in talks with banks for a loan of around S$5bil (US$3.9bil) to support the transaction, Bloomberg News reported in November, about four months after discussions between the firms emerged.
KKR and Singtel are existing investors in STT GDC after paying S$1.3bil for a minority stake in 2025. STT GDC’s parent, ST Telemedia, owns the rest. ST Telemedia is backed by Singapore state investor Temasek Holdings Pte, which also owns half of Singtel.
Based in Singapore, STT GDC is one of Asia’s largest data centre operators with more than 100 such facilities across 20 markets including India, South Korea, Japan and Malaysia.
It also has presence in the United Kingdom, Italy and Germany. The company provides services such as co-location, connectivity and support.
Data centres are attracting a lot of investor interest, not least because of their role in the artificial intelligence boom.
Investors led by BlackRock Inc’s Global Infrastructure Partners agreed to buy Aligned Data Centers in a US$40bil deal in October. Just before year-end, SoftBank Group Corp agreed to acquire private equity firm DigitalBridge Group Inc for about US$3bil in cash. — Bloomberg
