The KKR acquisition of ST Telemedia Global Data Centres is moving closer to completion, as the private equity firm partners with Singtel on a deal valued at more than $10 billion. The transaction would rank among Asia’s largest data centre acquisitions, reflecting how AI-driven compute demand is reshaping global digital infrastructure investment.
According to a report published by the Wall Street Journal, the transaction would value ST Telemedia Global Data Centres at more than S$13 billion, or approximately $10.22 billion. People familiar with the matter said negotiations have advanced and could conclude soon, although discussions remain ongoing.
AI Demand Pushes Mega Deals in Data Infrastructure
KKR plans to execute the acquisition alongside Singapore Telecommunications, widely known as Singtel. Together, the partners aim to buy the Singapore-based data centre operator from its parent, ST Telemedia. The structure would consolidate ownership under the consortium and mark a significant shift in control of one of the region’s most expansive digital infrastructure platforms.
Neither party publicly confirmed the details. The discussions, however, did not emerge in isolation. Reuters reported in November that KKR and Singapore Telecommunications were already in advanced talks to buy more than 80% of ST Telemedia Global Data Centres. That earlier proposal would have given the two firms full ownership for more than S$5 billion, or about $3.93 billion, highlighting how valuation expectations have since expanded.
KKR holds about 14% of ST Telemedia Global Data Centres. Singtel owns a stake of more than 4%. ST Telemedia controls the remaining shares and operates as a wholly owned unit of Temasek Holdings, Singapore’s state investment company. A successful transaction would therefore represent a partial exit for Temasek from a strategically important digital asset.
ST Telemedia Global Data Centres’ Global Footprint
Founded in 2014 and headquartered in Singapore, ST Telemedia Global Data Centres describes itself as “one of the world’s fastest-growing data centre providers.” The company has built a broad international footprint in just over a decade, positioning itself as a core infrastructure partner for cloud providers, financial institutions, and digital-native firms.
The operator runs more than 100 data centres with over 2 gigawatts of IT load across more than 20 major markets. Its presence spans Singapore, India, and Japan, while its European operations run under the VIRTUS brand in the UK, Germany, and Italy, according to its website. This combination of Asia-Pacific scale and European reach has made the platform especially attractive to global investors seeking diversified exposure.
If completed, the acquisition would rank among Asia’s biggest data centre deals to date. It would also reinforce a broader pattern: private equity firms increasingly pursue physical digital infrastructure, rather than pure software plays, as compute demand becomes inseparable from power, land, and execution capability.
For KKR, the move aligns with its long-standing strategy of building control positions in infrastructure assets that benefit from structural demand growth. For Singtel, deeper involvement would strengthen its position across the digital infrastructure stack, extending beyond telecommunications into large-scale compute environments.
Although the final terms remain subject to change, the potential transaction reflects how AI-driven workloads now dictate capital allocation across global markets. As data centres evolve from background utilities into strategic assets, deals of this size may become less exceptional and more expected in the race to secure compute capacity.
Should the consortium finalize the purchase, the deal would send a clear signal: ownership of large-scale, power-dense data centre platforms has become a cornerstone of the next phase of digital and AI-led growth.
