A consortium led by U.S. private equity firm KKR has agreed to acquire a Singapore-based data-center company valued at $10.9 billion, marking the firm’s largest infrastructure investment in the Asia-Pacific region to date. The deal reflects the growing demand for technology assets driven by the global AI boom.
The investor group, which includes Singapore telecommunications giant Singtel, will purchase the remaining stake in ST Telemedia Global Data Centres (STT GDC) not already owned from its parent company, according to statements released on Wednesday. KKR and partners had previously acquired a minority stake in STT GDC from ST Telemedia for $1.3 billion in 2024. Under the terms of the current transaction, KKR will hold a 75% share in the data-center operator, with Singtel retaining the remaining 25%.
Private equity and foreign firms have been actively pursuing opportunities in AI-driven data-center infrastructure. Asia, in particular, has emerged as a significant beneficiary of this trend, attracting billions of dollars in high-profile investments.
Recent major moves in the region include U.S.-based Micron breaking ground on a wafer fabrication facility in Singapore with an estimated investment of $24 billion. Late last year, Microsoft announced a $23 billion AI infrastructure investment, primarily in India, while Amazon revealed plans for a $5 billion data-center project in Taiwan. Similar investments in Southeast Asia, including Malaysia and Indonesia, are driving broader growth in the region’s digital economy, from e-commerce to digital payments.
“As hyperscalers continue to invest at levels well above historical norms, the sector now requires significantly larger pools of long-term capital to support continued growth,” said Projesh Banerjea, managing director and head of Southeast Asia infrastructure at KKR. He was referring to hyperscalers such as Amazon’s AWS, which provide large-scale data-center and cloud operations worldwide.
The acquisition of STT GDC is a key part of KKR’s Asia-Pacific infrastructure strategy and represents its latest global data-center investment. KKR’s Asia-Pacific infrastructure platform, launched in 2019, managed assets worth approximately $16 billion as of the end of September 2025. Previous investments in the region include Pinnacle Towers, a digital infrastructure platform focused on the Philippines, and OMS Group, a provider of subsea telecommunications cable services.
For Temasek Holdings, the parent company of ST Telemedia and majority shareholder of Singtel, the deal underscores its focus on “backing businesses that create enduring value and contribute to resilient, future-ready infrastructure for an AI driven world,” said Ravi Lambah, head of strategic initiatives at the Singapore state-investment firm.
STT GDC, which collaborates with Nvidia on AI-capable data centers, operates across multiple countries, including the U.K., Germany, India, Thailand, South Korea, Indonesia, Japan, the Philippines, Malaysia, and Vietnam. According to its website, the Singapore-based company runs over 100 data centers worldwide, with a combined IT capacity exceeding 2.3 gigawatts.
“Digital infrastructure remains one of the most compelling long-term investment themes globally,” said David Luboff, head of Asia-Pacific infrastructure at KKR, adding that STT GDC is “well-positioned within this landscape.”
The deal is expected to close by the early second half of 2026. Citi acted as the lead financial advisor to the KKR-led consortium and also provided acquisition financing.
