KKR Acquires Stake in Singtels Asia Data Centre Business Private Equity News Asia

KKR Acquires Stake in Singtel’s Asia Data Centre Business

Global investment firm KKR has acquired a 20% stake in Singtel’s regional data centre business for S$1.1 billion ($806.87 million).

The deal values the business at S$5.5 billion, making it one of the largest data centre transactions in the Asia-Pacific region.

Singtel is Asia’s leading communications technology group, providing a wide range of services to consumers and businesses across the region.

The company’s data centre business operates across Asia, with facilities in Singapore, Australia, and Hong Kong.

The investment by KKR will allow Singtel to expand its data centre business further, helping the company to meet the growing demand for cloud computing and other digital services in the region.

The acquisition by KKR is a significant move for the private equity firm, which has been actively investing in the technology sector in recent years. KKR has a strong track record of investing in companies that are at the forefront of digital transformation, and the deal with Singtel is expected to help the firm to continue to grow its presence in the region.

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Image: Singtel

The investment in Singtel’s data centre business is also expected to provide KKR with a stable source of income, as demand for cloud computing and other digital services continues to grow across Asia.

KKR’s Investment in Singtel

Stake and Valuation

Global investment firm KKR has agreed to acquire a 20% stake in Singtel’s regional data centre business for up to S$1 billion. KKR will have the option to increase its stake to 25% by 2027 at the pre-agreed valuation.

Transaction Details

Singtel and KKR have reached a definitive agreement under which a fund managed by KKR will commit up to S$1.1 billion to acquire the stake. This collaboration is a first between Singtel and KKR, and enables Singtel to monetise its established data centre assets and unlock value.

Strategic Choices and Benefits

Singtel’s regional data centre business is one of the largest in Asia, with assets in Singapore, Australia, and Hong Kong. The investment by KKR will enable Singtel to enhance its infrastructure and capabilities, and accelerate its growth in the data centre business. The partnership will also enable Singtel to leverage KKR’s global expertise and network to explore new opportunities in the region.

Regulatory Approvals

The transaction is subject to regulatory approvals and is expected to close by the end of 2023.

The Role of Pinnacle Towers

The data centre business of Singtel is housed under Pinnacle Towers, a wholly owned subsidiary of Singtel. Pinnacle Towers is a leading provider of data centre colocation services in the Asia Pacific region, with a portfolio of carrier-neutral data centres in key markets. The investment by KKR will enable Pinnacle Towers to expand its footprint and enhance its capabilities to serve customers in the region.

Singtel’s Data Centre Business

Singtel’s regional data centre business has been valued at S$5.5 billion ($4.03 billion) after KKR, a global investment firm, acquired a 20% stake in the company. Singtel is a leading communications technology group in Asia, providing a wide range of services including mobile, broadband, and TV.

Infrastructure and Locations

Singtel’s data centre business operates in several countries across Asia, including Singapore, Indonesia, Thailand, and Malaysia. The company’s data centres are strategically located in major cities such as Singapore, Bangkok, and Batam, providing customers with easy access to their services.

Singtel’s data centres are equipped with state-of-the-art infrastructure including high-speed connectivity, redundant power supply, and advanced security systems. The company also offers a range of services such as cloud computing, managed hosting, and disaster recovery solutions.

Role of AI in Operations

Singtel’s data centre business has adopted AI to improve the efficiency and reliability of its operations. The company’s AI-powered systems help to monitor and manage the data centres, ensuring that they are running at optimal levels.

Singtel has also developed AI-powered predictive maintenance solutions that can detect potential issues before they become critical, enabling the company to take proactive measures to address them. This helps to reduce downtime and improve the overall reliability of the data centres.

Cooling Systems

Cooling is a critical aspect of data centre operations, and Singtel has implemented advanced cooling systems to ensure that its data centres are running at optimal temperatures. The company uses a combination of air-cooled and water-cooled systems, depending on the specific requirements of each data centre.

Singtel’s data centres also feature advanced environmental monitoring systems that help to maintain optimal conditions for equipment and reduce energy consumption. The company’s focus on energy efficiency has earned it several awards for sustainability and environmental responsibility.

In conclusion, Singtel’s regional data centre business is a leading provider of data centre services in Asia, with a strong focus on infrastructure, AI, and cooling systems. The company’s strategic locations, advanced technology, and commitment to sustainability make it a reliable and trusted partner for businesses across the region.

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