KKR to Invest in Singtel’s Regional Data Centre Business
09.21.23
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Simpson Thacher is representing KKR in connection with its commitment of up to S$1.1 billion (~US$800 million) for a 20% stake in Singtel’s regional data centre business. This investment puts the enterprise value of Singtel’s overall regional data centre business at S$5.5 billion. KKR will have the option to increase its stake to 25% by 2027 at the pre-agreed valuation.
Singtel’s regional data centre business is part of the Digital InfraCo unit which was formed in June 2023. Singtel has been growing this business anchored by its expertise in Singapore where it is one of the largest operators. In addition to 62MW of existing capacity in Singapore, Singtel is building a new 58MW DC Tuas in Singapore and has also partnered Telkom and Medco Power in Indonesia and GULF and AIS in Thailand to develop data centres in Batam and Bangkok respectively. The data centre portfolio will deliver a total combined capacity of over 155MW once the three new projects are operational in 2025, with room to scale up to more than 200MW.
KKR is making this investment as part of its Asia infrastructure strategy.
The Simpson Thacher team includes Erik Wang, Ian Ho, Jasper Ma and Shirley Foo (M&A); Étienne Renaudeau and Pauline Patat (Antitrust); and Meredith Jones and Daisy Dai (Tax).