ST Telemedia Global Data Centres (STT GDC) is set to receive a SGD 1.75 billion investment from a KKR-led consortium consisting of KKR and Singtel, marking the largest digital infrastructure investment in Southeast Asia this year.
The initial investment will be made through Redeemable Preference Shares (RPS) that come with detachable warrants. Upon completion of the warrants, another investment amounting to SGD 1.24 billion will be made.
STT GDC’s decision to form a partnership with KKR and Singtel was made after a thorough evaluation process that considered the consortium's significant industry knowledge, strong financial position, and proposed strategic plan.
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Cloud and AI-Led Transformation
The investment aims to strengthen STT GDC's market position in all its operational regions and facilitate its worldwide expansion strategy, which includes both organic growth and strategic acquisitions.
Bruno Lopez, President and Group CEO of STT GDC, expressed his enthusiasm regarding the investment, citing its importance in supporting the increasing demand fueled by breakthroughs in cloud computing and artificial intelligence (AI).
“With the industry experiencing unprecedented cloud and AI-led growth, this strategic partnership with KKR and Singtel will be a significant catalyst for STT GDC's next chapter of growth as a leader in the digital infrastructure industry,” said Lopez.
Currently, STT GDC is one of the fastest-growing data center providers in the world with more than 95 data centers in 11 countries and a point of presence (PoP) in over 20 major business markets. The company has continuously provided essential services such as high-quality colocation, connectivity, and round-the-clock support services. STT GDC’s portfolio has a total combined capacity of more than 1.7 GW of IT load.
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Shared Vision for Expansion
“Our investment in STT GDC is a rare opportunity to support the growth of a leading data center platform with a terrific track record of growth and significant potential, whilst deepening our existing collaboration with Singtel,” expounded David Luboff, Co-Head of KKR Asia Pacific and Head of Asia Pacific Infrastructure, KKR.
Meanwhile, Arthur Lang, Group Chief Financial Officer of Singtel, highlighted the shared vision between the companies for the expansion of digital infrastructure driven by rapid digitalization and AI adoption around the world.
“This is a solid opportunity for Singtel to gain exposure to an established platform with a footprint in high-quality data center markets and aligns with our Singtel28 strategy to further scale our digital infrastructure business in collaboration with like-minded partners,” concluded Lang.
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