Private equity giant KKR & Co. is reportedly in discussions to acquire Singapore-based ST Telemedia Global Data Centres (STT GDC) in a deal that could value the Asian data center operator at over $5 billion, according to a Bloomberg report on Saturday. The potential acquisition would expand KKR’s existing 14.1% stake in the company, following its $1.37 billion joint investment with SingTel earlier this year.
STT GDC—a key player in Asia’s digital infrastructure sector—operates data centers across multiple markets, including Singapore, India, and the U.K. The reported talks come amid surging demand for cloud and AI-driven data storage, fueling consolidation in the industry. KKR declined to comment, while ST Telemedia did not immediately respond to Reuters’ request for confirmation.
If finalized, the deal would mark one of the largest private equity acquisitions in Asia’s tech infrastructure space this year. KKR has been aggressively expanding its data center portfolio, including a recent $1.3 billion investment in Singtel’s regional data center business. The move aligns with growing investor appetite for digital infrastructure assets as AI and cloud computing drive unprecedented data demand.
The discussions follow a wave of mega-deals in the sector, including Blackstone’s $10 billion take-private of QTS Data Centers and DigitalBridge’s acquisitions in Asia. Analysts suggest KKR’s potential full takeover of STT GDC could further consolidate its position as a dominant investor in next-generation digital real estate, particularly in high-growth Asian markets.