KKR, Singtel pay $5.2 billion for full control of data centre operator STT GDC

Core Viewpoint - A consortium led by KKR and Singapore Telecommunications is acquiring full control of ST Telemedia Global Data Centres for S$6.6 billion ($5.2 billion), highlighting the increasing demand for AI capacity and cloud services [1][2]. Group 1: Transaction Details - The deal represents the largest transaction in Singapore in four years and the biggest data centre deal in Southeast Asia, indicating a significant growth in computing capacity needs [2]. - The implied enterprise value of STT GDC is S$13.8 billion based on the acquisition price for the 82% stake not already owned by the consortium [1][3]. - The KKR-led consortium will acquire the remaining 82% stake from ST Telemedia, with KKR and Singtel holding 75% and 25% respectively post-transaction [4]. Group 2: Company and Market Impact - STT GDC, founded in 2014, has a design capacity of approximately 2.3 gigawatts across 12 major markets in the Asia Pacific, UK, and Europe, providing essential data centre services [3]. - The acquisition aligns with Singtel's strategy to enhance its digital infrastructure, positioning it as one of the largest data centre operators in Asia [5]. - Analysts suggest that Singtel's long-standing operational experience and infrastructure capabilities will enable it to capitalize on larger multi-market opportunities in the data centre sector [6].