KKR-SingTel consortium leading race for $1bn data centre stake

Private Equity Wire

A consortium led by US private investment firm KKR and Singapore Telecommunications is leading the race to acquire a $1bn minority stake in Asian data centre provider ST Telemedia Global Data Centres, according to a report by Reuters.

The report cites unnamed sources in revealing that the KKR-SingTel bid for the 20% stake faces competition from New York-headquartered alternative investment firm Stonepeak.

The competition reflects growing interest and demand for data centres across the Asia-Pacific region on the back of the recent boom in the artificial intelligence sector.

According to one of Reuters’ sources, a deal could be sealed or announced in early June, although a final decision has yet to be made.

New York-based KKR bought a 20% stake in SingTel’s regional data centre business last year for SGD1.1bn ($816m), while in February, the firm revealed it had raised $6.4bn for a fund focused on Asia-Pacific infrastructure and energy-related assets.

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