KKR Makes AI Play With Near $11 Billion Asia Data-Center Deal -- Update

By P.R. Venkat and Fabiana Negrin Ochoa

A KKR-led consortium has agreed to acquire a Singapore data-center company valued at $10.9 billion, marking the U.S. firm's largest Asia-Pacific infrastructure investment yet as the AI frenzy fuels demand for tech assets.

The group of investors, which includes Singapore telecommunications company Singtel, will buy the rest of ST Telemedia Global Data Centres not already owned from its parent, the companies said Wednesday.

The KKR-led group already owns a minority stake in STT GDC that it acquired from parent ST Telemedia for $1.3 billion in 2024.

The Wall Street Journal had reported about the potential acquisition on Sunday.

Under the terms of the deal, KKR will hold a 75% stake in the data-center operator, with Singtel owning the remainder.

Foreign firms, including private-equity investors, have been rushing to capitalize on AI-driven demand for data centers. Asia has been a major beneficiary of the wave, drawing in billions in high-profile investments.

Last week, U.S.-based Micron broke ground on a wafer fabrication facility in Singapore, where it plans to invest about $24 billion. Late last year, Microsoft said it would invest $23 billion--mostly in India--in AI infrastructure, while Amazon announced a $5 billion data-center project in Taiwan.

Similar deals across Southeast Asia, including in Malaysia and Indonesia, are driving the region's broader digital-economy--from digital payments to e-commerce.

"As hyperscalers continue to invest at levels well above historical norms, the sector now requires significantly larger pools of long-term capital to support continued growth," said Projesh Banerjea, managing director and head of Southeast Asia infrastructure at KKR.

Hyperscalers like Amazon's AWS provide data-center and cloud operations at a massive scale.

The STT GDC acquisition is part of KKR's Asia-Pacific infrastructure strategy, and marks its latest data-center investment globally.

KKR's Asia-Pacific infrastructure platform, established in 2019, had about $16.0 billion assets under management as of end-September 2025.

Past investments in the region include Pinnacle Towers, a Philippines-focused digital infrastructure platform, and OMS Group, a provider of subsea telecommunications cable services.

For Temasek Holdings, the parent of ST Telemedia and majority shareholder of Singtel, the move reflects its "commitment to backing businesses that create enduring value and contribute to resilient, future-ready infrastructure for an AI driven world," said Ravi Lambah, head of strategic initiatives at the Singapore state-investment firm.

STT GDC, which works with Nvidia on AI-capable data centers, operates in the U.K., Germany, India, Thailand, South Korea, Indonesia, Japan, the Philippines, Malaysia and Vietnam.

According to its website, the Singapore-based company runs more than 100 data centers worldwide, with a combined IT capacity of more than 2.3 gigawatts.

"Digital infrastructure remains one of the most compelling long-term investment themes globally," said David Luboff, head of Asia-Pacific infrastructure at KKR, adding that STT GDC is "well-positioned within this landscape."

The deal is expected to close by the early second half of 2026, the companies said Wednesday.

Citi acted as lead financial advisor to the KKR-led consortium and provided acquisition financing.

Write to P.R. Venkat at [e-mail] and Fabiana Negrin Ochoa [e-mail]

(END) Dow Jones Newswires

02-03-26 2017ET