Private equity giant KKR and Singapore Telecommunications are acquiring an 82% stake in STT GDC for $5.1 billion. The deal gives the data center operator an enterprise value of S$13.8 billion, with KKR taking a 75% share and Singtel 25% upon closing.

STT GDC, a unit of ST Telemedia, operates 2.3 gigawatts of capacity across Asia Pacific and Europe. Demand for data centers has surged due to generative artificial intelligence, making infrastructure like this strategically valuable for scaling AI workloads.

The transaction builds on KKR and Singtel’s earlier $1.75 billion investment in 2024. As AI adoption accelerates globally, control of data infrastructure becomes more critical. Investors will watch how the companies expand regional footprints and manage energy-efficient operations.

Singtel gains deeper exposure to the growing data center market without full ownership risk. KKR diversifies its infrastructure portfolio ahead of potential IPO opportunities. Market players expect similar consolidation as AI drives long-term power and space demands.