KKR-led group set to buy Singapore data-centre firm valued at over US$10 billion

[SINGAPORE] A KKR-led consortium is nearing a deal to buy ST Telemedia Global Data Centres, which would value the company at more than US$10.22 billion, the Wall Street Journal reported on Saturday (Jan 31), citing people familiar with the matter.

The investment firm will acquire the Singapore-based global data centre provider from its parent company, the report said, adding that KKR is making the acquisition together with Singaporean telecommunications giant Singtel.

Reuters could not immediately verify the report. KKR declined to comment on the report, while ST Telemedia Global Data Centres, ST Telemedia, and Singtel did not immediately respond to Reuters’ request for comment outside regular business hours.

Reuters reported in November that KKR and Singapore Telecommunications were in advanced talks to buy more than 80% of ST Telemedia Global Data Centres, which would give them full ownership, for over US$3.93 billion.

KKR currently owns about 14% of the firm while Singtel, the city-state’s biggest telecom operator, has a stake of more than 4%. The rest is held by ST Telemedia, which is wholly owned by Singapore state investor Temasek Holdings.

If successful, the deal would rank among Asia’s biggest data centre transactions, with the boom in artificial intelligence creating soaring demand for digital infrastructure.

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Founded in 2014 and headquartered in Singapore, ST Telemedia Global Data Centres describes itself as one of the world’s fastest-growing data centre providers.

It operates more than 100 data centres with over 2 gigawatts of IT load across over 20 major markets, including Singapore, India and Japan, as well as Europe via its VIRTUS brand in the UK, Germany and Italy, according to its website. REUTERS