It's official: KKR and Singtel to acquire STT GDC
A S$6.6 billion acquisition that is about more than just adding data centres.
KKR and Singtel today announced the acquisition of STT GDC. After months of leaks, a consortium will acquire the remaining 82% stake in STT GDC for S$6.6 billion from Temasek-owned ST Telemedia.
The acquisition
According to the release, this represents an implied enterprise value of approximately S$13.8 billion, or US$10.9 billion. The transaction is expected to close by early second half of 2026, subject to regulatory approvals.
As I wrote previously, STT GDC has over 100 data centres and 2.3GW of capacity. So what can Singtel Nxera and STT GDC do together that neither could do alone?
- Greater scale
The data centre space is growing increasingly competitive as interest in AI and data centres surges globally. Operators without substantial financial backing or data centres across multiple regions are at a severe disadvantage.
Together, Nxera and STT GDC have greater financial capacity, operate in more locations, can potentially benefit from economies of scale, and present a more credible platform to hyperscalers.
- More extensive connectivity
Singtel Digital InfraCo was created in June 2023 to consolidate Singtel's infrastructure assets into a standalone unit. STT GDC can now leverage Singtel's extensive subsea cable networks and satellite carrier business, potentially giving it an advantage over other operators.
- Training more workers
The data centre industry is facing a massive manpower crunch that is getting worse. With a rich existing pool of data centre experts, Nxera and STT GDC could find it easier to attract, train, and place workers within their data centres.
Both have plans on this front. Nxera had previously said it will train and hire more than 500 workers. Similarly, STT GDC last week announced plans to create more than 8,000 internship placements over the next five years.
- Stronger innovations
STT GDC has a strong track record of innovations, from trialling an AI-based control system to optimise data centre cooling, to using renewable Hydrotreated Vegetable Oil (HVO) for backup generators, and creating a data centre testbed for the adoption of DC power for AI workloads.
