When private equity investor KKR took up a 20% stake in Nxera for US$800 million ($1.03 billion) in September 2023, Nxera was valued at US$4 billion or 32 times its EV/Ebitda. “KKR’s investment will help to defray data centre capital expenditure [capex] across the region,” says the team.
Singapore Telecommunications (Singtel) offers one of the most compelling data centre plays in the region thanks to its data centre assets in captive markets, says the Singapore equity research team at RHB Bank Singapore.
The telecommunications company’s regional data centre business, Nxera, is a “major growth engine” and a “focal point” within its Singtel28 mid-term growth strategy. Unveiled on May 23, Singtel28 is the telco’s plan to enhance customer experiences and deliver “sustained value realisation” for its shareholders.
