KKR in Talks to Acquire ST Telemedia Global Data Centres in $5B Deal

U.S. investment giant KKR is reportedly negotiating to acquire Singapore-based ST Telemedia Global Data Centres (STT GDC) in a transaction valued at over $5 billion, according to Bloomberg News. The potential deal underscores the growing demand for data infrastructure across Asia amid rapid cloud computing and AI adoption.

KKR currently holds a 14.1% stake in STT GDC, making it one of the company’s key investors. Both KKR and ST Telemedia have yet to comment on the reported talks.

STT GDC, a subsidiary of Singapore’s ST Telemedia, operates data centers and provides digital infrastructure services across Asia. The company has become a critical player in the region’s fast-expanding data economy, driven by increasing internet usage, 5G rollouts, and enterprise cloud migration.

The reported $5 billion valuation highlights investor interest in Asia’s data center market, which has seen a surge in M&A activity as global private equity firms seek exposure to digital infrastructure. In 2024, KKR and Singapore Telecommunications jointly invested S$1.75 billion (approximately $1.37 billion) in ST Telemedia to expand its data center and infrastructure footprint.

If finalized, this acquisition would mark one of the largest data center deals in Asia, reinforcing KKR’s commitment to digital infrastructure investments worldwide. The move could also strengthen Singapore’s position as a leading regional data hub, catering to growing demand from tech firms and cloud service providers.

The ongoing discussions reflect a broader trend of private equity firms targeting high-growth digital assets, as data storage and processing become vital to emerging technologies and the global digital economy.