KKR Makes $5.2B Bet on AI Data Centers in Largest Southeast Asia Deal

February 3, 2026 · by Fintool Agent

KKR

KKR-9.69% is making its largest infrastructure investment in Asia Pacific history—a $5.2 billion acquisition of Singapore-based data center giant ST Telemedia Global Data Centres (STT GDC) that cements the private equity firm's position in the AI infrastructure buildout. 1

The deal values STT GDC at an enterprise value of S$13.8 billion (~$10.9 billion) and represents one of the largest digital infrastructure transactions in Southeast Asia. KKR and consortium partner Singtel will acquire the remaining 82% stake from founding shareholder ST Telemedia, a unit of Singapore's sovereign wealth fund Temasek Holdings. 2

The Deal Structure

The KKR-led consortium is paying S$6.6 billion in cash for the remaining stake in STT GDC. The consideration will be paid in two equal tranches—half at closing and the remainder approximately one year later.

Upon completion, KKR will hold a 75% ownership stake while Singtel will own the remaining 25%, factoring in the conversion of existing redeemable preference shares that both investors already hold. 4

The purchaser has secured debt facilities of approximately S$5 billion to fund the transaction and future capital expenditures. Singtel has committed S$740 million to the acquisition vehicle via an equity injection, funded from internal cash resources.

Singtel noted the transaction is not expected to have a material impact on its credit rating or dividend policy.

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Why STT GDC Matters

Founded in 2014 and headquartered in Singapore, STT GDC is one of the world's fastest-growing and most diversified data center platforms. The company boasts: 1

The platform provides critical colocation services, connectivity, and round-the-clock support—essential infrastructure as demand for AI and cloud services accelerates globally. 2

STT GDC's markets span Singapore, India, Japan, South Korea, Malaysia, Thailand, Indonesia, the Philippines, and Vietnam in Asia Pacific, with European presence in the UK, Germany, and Italy through its VIRTUS brand. 3

KKR's Digital Infrastructure Empire

The STT GDC acquisition is the latest chapter in KKR's aggressive push into digital infrastructure. The firm has built a substantial data center portfolio that now approaches $50 billion in total enterprise value on a 100% owned basis, spanning platforms in the U.S., Europe, Asia, and the Middle East. 4

David Luboff, Co-Head of KKR Asia Pacific and Head of Asia Pacific Infrastructure, emphasized the strategic rationale:

"Digital infrastructure remains one of the most compelling long-term investment themes globally as cloud computing and data-rich applications continue to reshape how data is created, stored, and processed. STT GDC is well-positioned within this landscape, with a diversified footprint, strong development pipeline and a leadership team with a clear vision for global scale." 5

The $50 Billion AI Partnership

This deal builds on KKR's October 2024 announcement of a $50 billion strategic partnership with Energy Capital Partners specifically designed to fund AI infrastructure growth. That partnership combines KKR's digital infrastructure expertise with ECP's power generation capabilities to address the critical bottleneck facing hyperscalers: access to reliable electricity. 6

The partnership has already delivered its first investment—a 190 MW hyperscale data center campus in Bosque County, Texas, developed with CyrusOne adjacent to Calpine's natural gas power plant. That project represents a total investment approaching $4 billion and is expected to be operational by Q4 2026. 7

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The AI Demand Thesis

The investment comes as U.S. data center demand is projected to nearly triple by 2030, driving over $1 trillion in investment. Data center power demand is expected to grow by 160% by 2030. 1

KKR executives have emphasized their disciplined approach despite the frenzy around AI infrastructure:

• Original underwriting: KKR did not ascribe any meaningful AI value in original underwriting for data center investments. For example, CyrusOne—their largest investment—was a take-private announced in 2021 with a thesis entirely driven by cloud demand; AI dynamics have been upside. 2

• Location focus: The team prioritizes locations proximate to key population centers that are difficult to replicate or replace. 3

• No speculative building: KKR only deploys capital once contractual customer commitments are in hand, typically with the world's largest and most creditworthy counterparties. 4

At the end of Q3 2025, digital infrastructure investments represented approximately 6% of KKR's AUM across its infrastructure platform. 5

KKR at a Glance

*Values retrieved from S&P Global

KKR shares closed at $103.28 on February 3, down nearly 10% amid a broader market selloff. The stock has traded in a range of $86.15 to $162.39 over the past year.

What to Watch

Near-term catalysts:

• Expected deal close by early H2 2026, pending regulatory approvals
• Integration of STT GDC into KKR's broader digital infrastructure strategy
• Further data center acquisitions through the ECP partnership

Longer-term considerations:

• Pipeline conversion: Can STT GDC's 1.7GW development pipeline translate into contracted revenue?
• Power access: As data center demand grows, power availability remains the key constraint
• Competition: Rising valuations across the data center space—independent power producers are trading at 17-18x earnings, roughly double historical levels 13

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The Bottom Line

KKR's $5.2 billion STT GDC acquisition represents a conviction bet that AI-driven demand for data center infrastructure is a multi-decade megatrend, not a cyclical peak. By securing one of Asia's largest and most diversified data center platforms, KKR positions itself to capture growth across the world's fastest-growing compute markets—just as hyperscalers scramble for capacity.

The deal also underscores the evolution of alternative asset managers into infrastructure operators. KKR isn't just providing capital; it's building an integrated offering that spans land acquisition, power generation, data center development, and connectivity—a full-stack solution for hyperscalers that smaller players can't replicate.

Related Companies: KKR & Co.-9.69%