Global investment firm KKR is taking a 20 percent stake in Singtel’s regional data centre business. This S$1.1 billion investment values Singtel’s overall regional data centre business at S$5.5 billion. KKR also has the option to raise its stake to 25 percent by 2027 at the pre-agreed valuation.
The collaboration enables Singtel to tap on KKR’s expertise investing in data centres and critical telecommunication infrastructure globally in addition to capital.
Proceeds from this transaction will be used to accelerate the expansion of its regional data centre business across Asean, including Singapore, Indonesia and Thailand, while exploring markets such as Malaysia.
“KKR’s investment underscores the quality of our data centre portfolio and confidence in our plans to scale the business by capitalising on the digitalisation and rapid AI adoption that is transforming this region We look forward to building on the strong momentum we have achieved to grow the business into one of the region’s leading green and sustainable data centre platforms with rich hyper-connectivity services,” said Bill Chang, CEO of Singtel’s Digital InfraCo.
“We are pleased to provide this tailored solution to support the regional data centre platform of Singtel, one of the most longstanding and distinguished corporations in Singapore and a leading digital infrastructure provider
in Asia Pacific. Robust digital infrastructure, including high-quality data centres, will play a crucial role in enabling Southeast Asia’s flourishing digital economy, and Singapore is well-placed to serve as a central hub for the region,” said David Luboff, Partner and Head of Asia Pacific Infrastructure at KKR.
This is KKR’s latest investment in Southeast Asia infrastructure and data centre infrastructure globally. Its infrastructure investments in Southeast Asia include Pinnacle Towers and First Gen in the Philippines, and Aster Renewable Energy. KKR’s data centre infrastructure portfolio includes CyrusOne, Global Technical Realty, and CoolIT Systems.
Entelechy Asia 