Singtel’s regional data centre business is part of the Digital InfraCo unit which was formed in June. In addition to 62MW of existing capacity in Singapore, Singtel is building a new 58MW data centre at Tuas. The telco has also partnered Telkom and Medco Power in Indonesia and Gulf and AIS in Thailand to develop data centres in Batam and Bangkok respectively. Come 2025, Singtel’s regional data centre portfolio will have a total capacity of over 155MW, with room to scale up to more than 200MW.
Singapore Telecommunications' (SGX:Z74
) (Singtel’s) sale of a 20% stake in its regional data centre business to Kohlberg Kravis Roberts & Co (KKR) for $1.1 billion is the latest move by the telco to unlock value of its infrastructure and assets while recycling capital to fund new growth. The transaction implies the regional data centre (RDC) business to have a value of $5.5 billion and 31x FY2024 EV/Ebitda.
Under terms of the deal announced on Sept 18, KKR also has the option to increase its stake in this business to 25% by 2027 at a pre-agreed valuation. Funding from KKR, as Singtel’s new strategic partner, will be committed on a progressive basis over three years to help speed up the expansion of the RDC across Asean and to also provide Singtel with more flexibility on how to monetise this business down the road.
