Singapore Telecommunications has announced that private equity firm KKR will acquire a 20% stake in its regional data centre business. With an investment commitment of up to S$1.1 billion ($806.87 million), this deal values SingTel’s overall regional data centre business at S$5.5 billion ($4.03 billion).
The funds from this investment will be used to expand the data centre’s operations in Southeast Asian markets, including Singapore, Indonesia, and Thailand. This move comes as Singapore aims to position itself as a central hub for the region’s flourishing digital economy.
According to David Luboff, partner and head of Asia-Pacific infrastructure at KKR, a robust digital infrastructure is vital for Southeast Asia’s digital economy development. The transaction is expected to be completed by the fourth quarter of 2023.
This partnership with KKR will undoubtedly strengthen SingTel’s presence in the data centre industry and enable them to better serve the growing demands of businesses in the region. With the rapid digitization taking place across Southeast Asia, the expansion of data centre capabilities will be crucial in supporting the increasing data storage and processing needs.
Singapore’s strategic location, advanced infrastructure, and favorable business environment make it an ideal choice for companies looking to establish data centres in the region. SingTel’s collaboration with KKR will not only benefit the telecommunications company but also contribute to the overall growth and development of the digital economy in Southeast Asia.