Key Takeaways
- • KKR, Singtel and Tata shareholders in STT GDC are preparing a sale of the data centre company, seeking at least $5 billion, according to a report.
- • The sale is part of a dual-track process that also weighed an Indian IPO, which had been valued at $6 billion to $7 billion.
- • STT GDC's sale price is slightly below its potential IPO valuation, and is compared with 18 to 20 times contracted EBITDA for Asia-Pacific data centres.
- • Potential buyers include global players entering India, large domestic conglomerates, infrastructure funds and private equity firms.
- • The Indian business is a 74:26 joint venture between STT Telemedia and Tata Communications, with Tata Group separately pursuing its own data centre platform with TPG and TCS.
Summary
Shareholders of STT GDC, the data centre company jointly held by KKR and Singtel, have appointed advisers to explore a sale of the business, according to a report. The company is seeking at least $5 billion, a figure slightly below its potential Indian initial public offering valuation of $6 billion to $7 billion. The sale would target global players operating in or considering entry into India, large domestic conglomerates, and financial investors including infrastructure-focused funds and private equity firms.
The process is a dual-track effort to rebalance capital requirements and help the Tata Group streamline its data centre plans. Shareholders had begun evaluating an Indian IPO around July, with advisers appointed for that process, when the business was valued at $6 billion to $7 billion.
Valuation benchmarks cited in the report include the Asia-Pacific data centre range of 18 to 20 times contracted EBITDA. Blackstone and CPPIB's $16 billion acquisition of Australia's AirTrunk in September 2024 valued that company at 22 to 23 times contracted EBITDA.
KKR and Singtel announced in February a $5.2 billion cash buyout to take full control of ST Telemedia Global Data Centres, implying an enterprise value of $10.2 billion. KKR currently owns 75 per cent of STT GDC, with Singtel holding the remainder.
The Indian business is a 74:26 joint venture between STT Telemedia and Tata Communications. STT entered India in 2016 by acquiring a controlling 74 per cent stake in Tata Communications' data centre business, when it was valued at Rs 3,140 crore and included 14 data centres. Tata Communications invested another Rs 319.4 crore in STT during FY26 to retain its stake, and in September 2024 announced a Rs 26,000-crore commitment to add 550 MW of capacity over five to six years. Separately, the Tata Group has decided to pursue its data centre plans through an independent platform involving TPG and group flagship TCS.
The process is a dual-track effort to rebalance capital requirements and help the Tata Group streamline its data centre plans. Shareholders had begun evaluating an Indian IPO around July, with advisers appointed for that process, when the business was valued at $6 billion to $7 billion.
Valuation benchmarks cited in the report include the Asia-Pacific data centre range of 18 to 20 times contracted EBITDA. Blackstone and CPPIB's $16 billion acquisition of Australia's AirTrunk in September 2024 valued that company at 22 to 23 times contracted EBITDA.
KKR and Singtel announced in February a $5.2 billion cash buyout to take full control of ST Telemedia Global Data Centres, implying an enterprise value of $10.2 billion. KKR currently owns 75 per cent of STT GDC, with Singtel holding the remainder.
The Indian business is a 74:26 joint venture between STT Telemedia and Tata Communications. STT entered India in 2016 by acquiring a controlling 74 per cent stake in Tata Communications' data centre business, when it was valued at Rs 3,140 crore and included 14 data centres. Tata Communications invested another Rs 319.4 crore in STT during FY26 to retain its stake, and in September 2024 announced a Rs 26,000-crore commitment to add 550 MW of capacity over five to six years. Separately, the Tata Group has decided to pursue its data centre plans through an independent platform involving TPG and group flagship TCS.
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