If finalised, this deal could mark Asia’s largest-ever leveraged buyout financing in the data centre sector, according to Bloomberg-compiled data. It will also contribute to a wave of big-ticket financings driven by surging demand for cloud services amid the region’s artificial intelligence boom. The most recent comparable was a A$5.5 billion loan supporting Blackstone Inc’s A$24 billion purchase of Australia’s AirTrunk in 2024.
Spokespeople for KKR and STT declined to comment while Singtel didn’t respond to requests for comment.
Based in Singapore, STT GDC is one of Asia’s largest data centre operators, with over 100 data centres across 20 markets including India, South Korea, Japan and Malaysia, according to its website. The company also maintains a presence in Europe, with operations in the UK, Italy and Germany.
The proposed buyout follows the consortium’s S$1.75 billion investment last year for a minority stake in STT GDC, Bloomberg News reported. Following that transaction, KKR holds approximately 14.1% of the company, while Singtel — owned by Singapore state-owned investor Temasek Holdings Pte — owns 4.2%.
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IFR reported on the potential financing earlier.
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