KKR-SingTel consortium leading to buy $1 billion stake in data center provider, sources say

SINGAPORE: A consortium of US investment firm KKR and Singapore Telecommunications (SingTel) has emerged as the favorite to buy a minority stake worth $1 billion in one of Asia’s biggest data center providers, they said. two sources.

The potential investment in STT Telemedia Global Data Centers (STT GDC) reflects the growing interest and demand for data centers across Asia Pacific as nations and businesses respond to the rise of artificial intelligence.

The KKR-SingTel consortium is competing with New York-based alternative investment firm Stonepeak for a stake of up to 20 percent, one of the sources said.

A deal could be closed or announced in early June, the first source added.

The sources declined to be identified because the information is not yet public.

KKR declined to comment.

SingTel, in a filing to the local stock exchange on Wednesday, said it regularly explores and reviews business opportunities, projects and proposals related to its business and engages in discussions with various parties from time to time.

“Where such discussions occur, there is no certainty that any transaction will arise from these discussions or that any definitive or binding agreement will be entered into pursuant to these discussions, and SingTel confirms that there is no definitive or binding agreement at this time.” he added.

STT and Stonepeak did not respond to requests for comment.

New York-based KKR last year bought a 20 percent stake in SingTel’s regional data center business for S$1.1 billion ($816 million).

In February, KKR announced it had raised $6.4 billion for a fund focused on Asia-Pacific infrastructure and energy-related assets.

Founded in 2014, STT GDC is one of the fastest growing data center providers with operations in Singapore, United Kingdom, Germany, India, Thailand, South Korea, Indonesia, Japan, Philippines, Malaysia and Vietnam, according to its site Web.

ST Telemedia, parent of STT GDC, is a Singapore-based strategic investor specializing in assets including communications and data centers, according to its website.

ST Telemedia is wholly owned by Singapore state investment firm Temasek Holdings.