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SummaryCompaniesDeal likely to be among Asia's largest data centre transactionsAI boom driving demand for global data infrastructureA deal could be struck before year-end, source says SINGAPORE/HONG KONG, Nov 6 (Reuters) - KKR & Co (KKR.N), opens new tab and Singapore Telecommunications (STEL.SI), opens new tab are in advanced talks to buy more than 80% of ST Telemedia Global Data Centres - which would give them full ownership - for over S$5 billion ($3.9 billion), two people with direct knowledge of the plans said. KKR currently owns about 14% of the firm while Singtel, the city-state's biggest telecom operator, has a stake of more than 4%. The rest is held by ST Telemedia, which is wholly owned by Singapore state investor Temasek Holdings (TEM.UL). Advertisement · Scroll to continueReport Ad If successful, the deal would rank among Asia's biggest data centre transactions, with the boom in artificial intelligence creating soaring demand for digital infrastructure. KKR, ST Telemedia and ST Telemedia Global Data Centres declined to comment. Singtel did not immediately respond to a Reuters query. KKR is leading the acquistion, according to one of the sources, but Reuters was not able to learn the separate investment amounts planned by the global investment firm and Singtel. A deal could be struck before year-end, though final terms and the timeline could still shift, the same source said. The sources declined to be identified as the matter is private. Advertisement · Scroll to continue KKR and Singtel first invested S$1.75 billion in the data centre firm in June 2024. Founded in 2014 and headquartered in Singapore, ST Telemedia Global Data Centres describes itself as one of the world's fastest-growing data centre providers. It operates more than 100 data centres with over 2 gigawatts of IT load across over 20 major markets, including Singapore, India and Japan, as well as Europe via its VIRTUS brand in the U.K, Germany and Italy, according to its website. KKR's Asia Pacific infrastructure business, launched in 2019, has about $13 billion in assets under management. Recent deals include the acquisitions of Australian independent power producer Zenith Energy in June and poultry farming operator ProTen in July. Ad Break Coming Up NEXT StayNext OffEnglish 180p288p360p480p540p576p720pHD1080pHDAuto (180p) About ConnatixV2143896119 About ConnatixV2143896119 Continue watchingafter the adVisit Advertiser websiteGO TO PAGE Reporting by Yantoultra Ngui in Singapore and Kane Wu in Hong Kong; Editing by Sumeet Chatterjee and Edwina Gibbs Purchase Licensing Rights Yantoultra NguiThomson ReutersYantoultra Ngui is the Southeast Asia Deals Correspondent of Reuters in Singapore, covering M&A and capital market activities in a region that is fast emerging as one of the world’s biggest economies. He previously was a reporter at Bloomberg and The Wall Street Journal (WSJ). Notably, he was part of WSJ's team that covered the financial scandal at Malaysian state fund 1MDB, and that won SOPA Excellence in Breaking News award for the coverage of the assassination of Kim Jong Nam, the half-brother of North Korea's leader Kim Jong Un, in Malaysia in 2018. Yantoultra graduated with an MBA in Finance from Universiti Putra Malaysia (UPM) in 2010.EmailXLinkedinKane WuThomson ReutersKane Wu covers M&A, private equity, venture capital and investment banks in Asia. She tracks the region's most high-profile deals, fundraisings as well as investment trends amidst geopolitical, macroeconomic and regulatory changes. She was nominated for a SOPA Excellence in Business Reporting award for coverage of China regulatory crackdown in 2021. Prior to Reuters, she worked at the Wall Street Journal and also wrote about Asia's loan market for Thomson Reuters Basis Point. She is based in Hong Kong.EmailX
