Sovereign wealth funds from Singapore and Abu Dhabi are preparing to back one of the largest digital infrastructure deals. GIC and Mubadala are in talks to join a consortium led by KKR and Singtel to buy data center operator STT GDC.
- Deal details and consortium
- Deal value and market impact
- About STT GDC
- AI boom and investment
- Frequently asked questions
Deal details and consortium
Sources familiar with the matter stated that the sovereign funds will join as minority co-investors in the transaction led by American firm KKR. The companies are currently finalizing details, and an agreement could be announced this week. Singtel shares rose 2.6% following the news, although the company confirmed that no final binding agreement has been reached yet.
Deal value and market impact
The transaction could value the data center company at over $10 billion, including debt. KKR and Singtel are negotiating a 5 billion Singapore dollar loan to finance the operation. Notably, both companies already invested $1.3 billion in the firm in 2025.
About STT GDC
Headquartered in Singapore, the company is one of the largest data center operators in Asia, with more than 100 facilities across 20 markets including India, Japan, and Europe. The company provides critical hosting and connectivity infrastructure, making it a strategic target for investors.
AI boom and investment
Data centers are attracting immense interest due to their role in powering artificial intelligence. The sector has recently witnessed massive deals, such as BlackRock’s acquisition of Aligned Data Centers for $40 billion. However, concerns remain regarding inflated spending, as evidenced by the stumbling of certain other buyout negotiations in the market.
Frequently asked questions
Question: Who are the parties involved in the deal?
Answer: A consortium comprising KKR and Singtel, with potential participation from Mubadala (Abu Dhabi) and GIC (Singapore).
Question: What is the expected value of the deal?
Answer: The target company is valued at more than $10 billion USD.
Question: Why invest in data centers?
Answer: To meet the massive demand for cloud computing and data processing driven by the artificial intelligence revolution.
