Singapore-based ST Telemedia Global Data Centres (STT GDC) has announced the signing of definitive agreements under which a KKR-led consortium, consisting of KKR (on behalf of funds managed by it) and Singtel (the Consortium), will invest in STT GDC. This transaction, as claimed in the joint statement, marks Southeast Asia's largest digital infrastructure investment in 2024.
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Details of the Investment
According to the statement, the KKR-led consortium will initially inject USD 1.3 billion into STT GDC through Redeemable Preference Shares (RPS) with detachable warrants. Upon full exercise of the warrants, the Consortium will invest an additional USD 920 million. Full exercise of these warrants could bring the total investment to USD 2.22 billion.
The proceeds of the investment will be used to further advance STT GDC's position in the markets it operates in and to support its continuing international expansion and growth plans through organic and inorganic strategies, the official release said. Following the transaction, ST Telemedia will continue to be the majority shareholder of STT GDC.
STT GDC's Market Position and Services
STT GDC, operating over 95 data centres across 11 regions, provides colocation, connectivity, and support services. Currently, the company's data centre portfolio has a total combined capacity of more than 1.7 GW of IT load. This partnership is expected to accelerate its growth amid rising cloud and AI demand.
STT GDC said, "We are thrilled to welcome KKR and Singtel, two blue-chip investors in the digital infrastructure space into the STT GDC group. Since our inception 10 years ago, STT GDC has developed into a leading data centre provider with a significant footprint in Asia, UK and Europe, supporting the growth of the world’s largest cloud and enterprise customers. With the industry experiencing unprecedented cloud and AI-led growth, this strategic partnership with KKR and Singtel will be a significant catalyst for STT GDC's next chapter of growth as a leader in the digital infrastructure industry."
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KKR's investment comes from its Asia Pacific Infrastructure Investors II Fund, aligning with its commitment to the Indo-Pacific region. In September 2023, KKR acquired a 20 percent stake in Nxera, Singtel's regional data centre business.
The closing of the transaction is subject to the satisfaction of certain conditions precedent, including regulatory approvals.
