Singtel, one of Asia’s leading communications technology groups, and global investment firm KKR have reached a definitive agreement under which a fund managed by KKR will commit up to $800 million for a 20 percent stake in Singtel’s regional data center business. This investment puts the enterprise value of Singtel’s overall regional data center business at $4 billion, according to the companies. KKR will have the option to increase its stake to 25 percent by 2027 at the pre-agreed valuation.
The collaboration is a first between Singtel and KKR, and enables Singtel to tap on KKR’s expertise investing in data centers and critical telecommunication infrastructure globally, in addition to capital. The proceeds from this transaction will be used to accelerate the expansion of the regional data center business across ASEAN markets, including Singapore, Indonesia and Thailand, while exploring markets like Malaysia and others. Singtel said this will widen the business’ strategic choices, giving a variety of options to monetise in the future.
Singtel’s regional data center business is part of the company’s Digital InfraCo unit which was formed in June 2023. Singtel has been growing this business anchored by its expertise in Singapore where it is one of the largest operators. In addition to 62MW of existing capacity in Singapore, Singtel is building a new facility in Singapore and has also partnered Telkom and Medco Power in Indonesia and GULF and AIS in Thailand to develop data centers in Batam and Bangkok, respectively. The data center portfolio will deliver a total combined capacity of over 155MW once the three new projects are operational in 2025, with room to scale up to more than 200MW.
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