KKR and Singtel step up data centre investment in Southeast Asia

February 06, 2026 | 13:09

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KKR and Singtel are teaming up to acquire a majority stake in data centre operator ST Telemedia Global Data Centres in a multibillion-dollar transaction aimed at accelerating regional digital infrastructure expansion, including in Vietnam.

KKR and Singtel step up data centre investment in Southeast Asia

Global investment firm KKR, Singapore-based communications technology group Singtel, and ST Telemedia on February 3 signed definitive agreements under which funds managed by KKR and Singtel will acquire the remaining 82 per cent stake in ST Telemedia Global Data Centres (STT GDC). The stake is being purchased from founding shareholder ST Telemedia for approximately $5.1 billion.

The deal ranks among the largest digital infrastructure deals in Southeast Asia and is expected to support STT GDC’s growth strategy across its existing markets, including Vietnam, as demand for data centre capacity continues to rise across the region.

The transaction is expected to close by early second half of 2026. Upon completion, KKR and Singtel will own stakes of 75 per cent and 25 per cent respectively in the company, taking into account the conversion of existing redeemable preference shares that both KKR and Singtel hold in the company.

The KKR and Singtel consortium first invested approximately $1.3 billion in STT GDC through preference shares and warrants. Since then, the company has grown its pipeline from 1.4GW in 2024 to over 1.7GW.

David Luboff, co-head of KKR Asia-Pacific and head of Asia-Pacific Infrastructure at KKR, said, "Digital infrastructure remains one of the most compelling long-term investment themes globally as cloud computing and data-rich applications continue to reshape how data is created, stored, and processed. STT GDC is well-positioned within this landscape, with a diversified footprint, strong development pipeline and a leadership team with a clear vision for global scale."

"This transaction represents a rare opportunity to further support a high-quality platform and deepen our strategic partnership with Singtel. We look forward to deploying KKR’s global network and deep digital infrastructure expertise to help STT GDC accelerate its next phase of sustainable, international growth," he added.

Established in 2014 by ST Telemedia and headquartered in Singapore, STT GDC is one of the world’s fastest-growing and most diversified data centre platforms with 2.3GW of design capacity across 12 major markets in Asia-Pacific and the UK and Europe. It provides critical services including high-quality colocation, connectivity and round-the-clock support services. As demand for AI and cloud services continues to accelerate, it is fuelling the need for new data centres to drive resource-intensive workloads

In Vietnam, STT GDC has formed a strategic collaboration with VNG Corporation to develop and manage international standard data centres in Ho Chi Minh City. The initiative involves continuing operations at the existing STT VNG Ho Chi Minh City 1, originally known as VNG Data Centre, and launching a new facility, STT VNG Ho Chi Minh City 2, with a total IT load of over 69 MW.

The acquisition will not have any impact on STT GDC’s business operations, customer service commitments, or workforce across its markets. STT GDC stated it will continue to step up investments in sustainable digital infrastructure, effectively supporting businesses and organisations in Vietnam in digital transformation and AI adoption.

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On May 15, Singapore-headquartered firm ST Telemedia Global Data Centres (STT GDC) and Vietnam's VNG Corporation announced a strategic collaboration to develop and manage international standard data centres in Ho Chi Minh City.

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By Thanh Van

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