STT DC’s operational capacity of 670MW combined with Singtel’s 150MW via Nxera should make Singtel the largest Asian data-centre player by size. The deal is seen to give Singtel a "long-term growth driver at a small cost," says DBS in its Feb 4 note.
DBS Group Research is keeping its bullish target price of $5.71 on Singapore Telecommunications following confirmation on Feb 4 that it is joining KKR to take full control of STT Global Data Centres for $6.6 billion, which implies an enterprise value of $13.8 billion, including leverage and planned capex.
KKR and Singtel already hold around 18% of the target, which reported a net loss of US$185 million in its FY2024 ended Dec 2024.
