Singapore Telecommunications (SingTel) announced on Monday that private equity firm KKR will acquire a 20% stake in SingTel’s regional data centre business with an investment commitment of up to S$1.1 billion. This deal values SingTel’s overall regional data centre business at S$5.5 billion and aims to facilitate the expansion of the data centre business across Southeast Asian markets, including Singapore, Indonesia, and Thailand.
KKR’s investment comes as Southeast Asia’s digital economy continues to thrive, and Singapore positioned itself as a central hub for the region’s digital infrastructure. SingTel plans to utilize the funds to strengthen its digital infrastructure and enhance its capabilities in serving the growing demand for data centre services.
The transaction between SingTel and KKR is expected to be completed by the fourth quarter of 2023. This significant investment will not only enable SingTel to expand its data centre operations but also support the development of robust digital infrastructure in Southeast Asia.
With the growth of digitalization and the increasing reliance on data storage and processing, data centres play a crucial role in supporting various industries and driving economic growth. SingTel’s partnership with KKR demonstrates their commitment to capitalizing on the growing demand for data centre services in the region.
As the digital economy continues to evolve and expand in Southeast Asia, investments in infrastructure and data centres are essential to meet the increasing demand for connectivity and digital services. SingTel’s collaboration with KKR will contribute to the development of a robust digital ecosystem in the region, reinforcing Singapore’s position as a key player in the digital economy.