GIC, Mubadala said to be set to join KKR in US$10 billion STT Deal
Data centres are attracting a lot of investor interest, not least because of their role in the artificial intelligence boom
[ABU DHABI] GIC and Mubadala Investment are in talks to join KKR and Singtel in their potential purchase of data centre operator STT GDC, sources familiar with the matter said, in what could be one of the biggest digital infrastructure deals in recent months.
The sovereign wealth funds from Singapore and Abu Dhabi are set to back the KKR-led transaction as minority co-investors, the sources said, asking not to be identified because the deliberations are private. A potential deal may value STT GDC at more than US$10 billion, including debt, the sources said.
The firms are hammering out details of a transaction that could be announced as soon as this week, they said.
Dow Jones reported on Sunday (Feb 1) that a KKR-led consortium, including Singtel, was nearing a deal for STT GDC. Singtel said in an exchange filing following the report that it is in advanced discussions regarding the data centre company but there’s no certainty of any definitive or binding agreement.
A representative for Mubadala declined to comment. KKR, GIC and ST Telemedia did not respond to requests for comment outside of regular business hours.
KKR and Singtel have been in talks with banks for a loan of around S$5 billion to support the transaction, Bloomberg News reported in November, about four months after discussions between the firms emerged.
Navigate Asia in
a new global order
Get the insights delivered to your inbox.
KKR and Singtel are existing investors in STT GDC after paying US$1.3 billion for a minority stake in 2025. STT GDC’s parent, ST Telemedia, owns the rest. ST Telemedia is backed by Singapore state investor Temasek Holdings, which also owns half of Singtel.
Based in Singapore, STT GDC is one of Asia’s largest data centre operators with more than 100 such facilities across 20 markets, including India, South Korea, Japan and Malaysia. It also has a presence in the UK, Italy and Germany. The company provides services such as co-location, connectivity and support.
Data centres are attracting a lot of investor interest, not least because of their role in the artificial intelligence (AI) boom. Investors led by BlackRock’s Global Infrastructure Partners agreed to buy Aligned Data Centers in a US$40 billion deal in October. Just before year end, SoftBank Group agreed to acquire private equity firm DigitalBridge Group for about US$3 billion in cash.
Still, some concerns have been brewing about the high levels of spending in AI infrastructure.
Last week, sources familiar with the matter said that SoftBank has halted talks about an acquisition of US data centre operator Switch, a setback to founder Masayoshi Son’s ambition to roll out Stargate AI infrastructure. BLOOMBERG
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Share with us your feedback on BT's products and services
