GIC and Mubadala Investment Company are in advanced talks to join KKR and Singapore Telecommunications in acquiring STT GDC, a deal that could exceed $10bn. This transaction underscores the growing investment in data center infrastructure, driven by the surge in cloud computing and AI workloads. The sovereign wealth funds from Singapore and Abu Dhabi are set to participate as minority co-investors, with an announcement imminent as early as this week. This partnership highlights the strategic importance of data centers in the digital economy, as demand for these facilities continues to rise.

The consortium is finalizing deal terms, with KKR and Singtel already in discussions with banks for a loan of around $3.9bn to support the acquisition. This follows their earlier minority stake purchase in STT GDC for $1.3bn in 2025, indicating their long-term commitment to this sector. The remaining stake is owned by ST Telemedia, backed by Temasek, which also controls half of Singtel. This deal signifies a significant move in the private equity space, with data centers becoming a key focus for investment despite concerns over capital intensity and power availability.

STT GDC operates over 100 data centers across 20 markets, including India, Japan, and several European countries. The company provides co-location, connectivity, and related infrastructure services, positioning itself as a critical player in the digital infrastructure market. The transaction, if completed, would be one of the largest digital infrastructure deals in Asia, reflecting the continued appetite for data centers despite rising challenges. As the digital economy expands, such deals are likely to become more frequent, with investors seeking to capitalize on the growing demand for data center services.

The involvement of GIC and Mubadala adds a layer of international cooperation, potentially influencing future investments in the data center sector. This deal also highlights the strategic importance of data centers in supporting AI and cloud computing, which are driving the need for more robust and extensive data infrastructure. As the market evolves, investors and businesses will need to adapt to the changing dynamics of the data center industry, focusing on efficiency and sustainability.