KKR and Singtel are set to invest S$1.75bn (US$1.3bn) in ST Telemedia Global Data Centres (STT GDC).

The investment will comprise an initial S$1.75bn (US$1.3bn) by the consortium via Redeemable Preference Shares. Once finished, Singtel and KKR may invest an additional S$1.24bn (US$920m).

Singtel and KKR were selected following an independent competitive process by STT and STT GDC. The investment will be used to "further advance STT GDC's position in the markets it operates in," and enable the company to expand into new markets internationally.

In February 2024, STT GDC revealed that private equity funds were being lined up to back a $1bn funding round in advance of a potential IPO for the business in either the US or Singapore. In May 2024, it was reported that KKR and Singtel were competing with Stonepeak for the 20 percent stake in STT GDC that came with the investment.

Despite the significant investment, STT remains the majority shareholder of STT GDC.

Headquartered in Singapore, STT GDC is a data center provider with more than 95 data centers across 11 geographies and points of presence in over 20 major business markets. The company currently has a total combined capacity of 1.7GW of IT load.

Bruno Lopez, president & group CEO of STT GDC, said: “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.”

David Luboff, co-head of KKR Asia Pacific and head of Asia Pacific Infrastructure, added: “Data centers serve as an important backbone of the digital infrastructure that enables an increasingly digital economy and many critical industries globally. Our investment in STT GDC is a rare opportunity to support the growth of a leading data center platform with a terrific track record of growth and significant potential, whilst deepening our existing collaboration with Singtel."

KKR is making the investment from its Asia Pacific Infrastructure Investors II Fund. The company has previously invested in Nxera, a Singapore-headquartered data center platform owned by Singtel; Pinnacle Towers, a digital infrastructure platform focused on the Philippines; and OMS Group, a neutral subsea cable services provider.

In January 2024, STT GDC raised $338m in sustainability-linked securities. This year, the company has announced plans to expand into Vietnam and broke ground on a third Chennai, India, data center.