KKR-SingTel Consortium Takes Lead in $1 Billion Data Centre Bid!

Consortium Eyes $1 Billion Stake in Asian Data Center Firm

A partnership between US investment firm KKR and Singapore Broadcast communications (SingTel) is leading the bid for a $1 billion minority stake in one of Asia's largest data center providers. This interest in STT Telemedia Global Data Centers (STT GDC) reflects growing demand for data centers across Asia Pacific due to the rise in artificial intelligence. The KKR-SingTel partnership is competing with New York-based alternative trading company Stonepeak for a stake of up to 20 percent.

An agreement could be reached or announced in early June, according to sources familiar with the matter. SingTel stated in a recent stock exchange filing that it regularly explores business opportunities and engages in discussions with various parties, but there is no certainty regarding any transactions or agreements at this time. 

STT and Stonepeak did not respond to requests for comment. Last year, KKR acquired a 20 percent stake in Sing Tel's local data center business for S$1.1 billion ($816 million). In February, KKR announced a $6.4 billion fund focused on Asia-Pacific infrastructure and energy-related assets. 

STT GDC, established in 2014, is among the fastest-growing data center providers with operations in multiple countries. ST Telemedia, the parent company of STT GDC, is a Singapore-based strategic investor specializing in communications and data centers.