KKR & Co. Inc. Expands Footprint in Asia’s Data‑Centre Market Through a S$6.6 Billion Acquisition of ST Telemedia Global Data Centres

KKR & Co. Inc. (NYSE: KKR), a leading global investment firm, has finalized a consortium‑led purchase of the remaining 81.7 % of ST Telemedia Global Data Centres (STT GDC) from Temasek Holdings, paying approximately S$6.6 billion (≈ US$5.1 billion). The deal gives KKR a 75 % ownership stake, while Singtel will hold the remaining 25 %.

Deal Structure and Enterprise Value

  • Purchase Price: S$6.6 billion for the 81.7 % stake.
  • Enterprise Value: Roughly S$13.8 billion (≈ US$10.86 billion) for the entire company.
  • KKR’s Contribution: $740 million in cash, translating to a 75 % equity position.
  • Singtel’s Contribution: $740 million, securing a 25 % equity share.

The transaction values STT GDC’s data‑centre portfolio at a multiple of roughly 2.2 × EBITDA, in line with recent comparable deals in the sector.

Strategic Rationale

KKR’s investment aligns with its broader strategy of expanding in high‑growth, infrastructure‑heavy segments. The data‑centre market in Asia is projected to grow at a CAGR of 12–14 % over the next decade, driven by cloud adoption, edge computing, and 5G rollout. By securing a majority stake in a well‑positioned operator, KKR gains:

  • Access to a diversified portfolio of colocation facilities across Singapore, Malaysia, Indonesia, and the Philippines.
  • Recurring revenue streams from long‑term contractual agreements with global cloud providers and enterprise clients.
  • Opportunities for operational synergies through KKR’s portfolio of technology and infrastructure investments.

Singtel’s partnership enhances the consortium’s telecom expertise and local market knowledge, potentially opening pathways for joint ventures in network‑edge services.

Market Reaction

  • Stock Price: KKR shares closed at $114.36 on 2026‑02‑01, with a 52‑week high of $155.61 and a low of $86.15. The transaction’s market‑impact is expected to reinforce investor confidence in KKR’s growth trajectory.
  • Earnings Outlook: Analysts anticipate a modest dilution of earnings per share due to the $740 million equity injection, but the long‑term upside from data‑centre cash flows should offset short‑term earnings pressure.
  • ETF Activity: Goldman’s Equal Weight U.S. Large Cap Equity ETF purchased 5,694 shares of KKR, while its Hedge Industry VIP ETF sold 50,550 shares. These divergent moves suggest sector‑specific risk appetite differences among institutional investors.

Forward‑Looking Perspective

KKR’s entry into the Asia‑Pacific data‑centre market is a strategic pivot toward infrastructure that underpins digital transformation. With the consortium positioned to capture a larger share of the region’s expanding cloud and edge computing demand, the firm is well‑placed to generate stable, high‑quality cash flows. The partnership with Singtel also provides an avenue to integrate telecommunications services, potentially creating bundled solutions that enhance competitive differentiation.

The deal’s completion marks a significant milestone in KKR’s global expansion strategy, reinforcing its commitment to infrastructure assets that offer resilience against economic cycles and technological disruption. Investors should monitor the integration progress and the pace at which STT GDC’s operational efficiencies are realized, as these factors will determine the ultimate value creation from this transaction.