Singtel Regional Data Centre Business Attracts USD 800 Million Investment From KKR

kkr usd800 million 20percent stake singtel datacentre
The Singapore-based telecommunications company Singtel has entered into a deal with the global investment firm KKR. Under this agreement, KKR will acquire a 20 percent stake in Singtel’s regional data centre business for up to SGD 1.1 billion (approximately USD 800 million). This investment values Singtel’s regional data centre business at SGD 5.5 billion, with KKR having the option to increase its stake to 25 percent by 2027 at a predetermined valuation.

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Purpose of the Investment

According to the official statement, this marks the first collaboration between Singtel and KKR. KKR’s investment in Singtel’s data centre business aims to accelerate the expansion of regional data centre operations across ASEAN markets, including Singapore, Indonesia, and Thailand. The funds will also be used to explore opportunities in other markets, such as Malaysia.

Strategic Importance

Singtel’s data centre business is part of its Digital InfraCo unit, established in June 2023, as reported by TelecomTalk. Singtel has been expanding its data centre operations, both in Singapore and through partnerships in other Southeast Asian countries, said the statement. This investment will help strengthen Singtel’s position in the rapidly growing data centre industry.

Also Read: Singtel Announces Consolidation, Forms Digital InfraCo to Drive Growth in Digital Infrastructure

Data Centre Capacity Growth

“In addition to 62 MW of existing capacity in Singapore, Singtel is building a new 58 MW DC Tuas in Singapore and has also partnered Telkom and Medco Power in Indonesia and GULF and AIS in Thailand to develop data centres in Batam and Bangkok respectively, noted the statement.