Singapore’s GIC and Abu Dhabi-based Mubadala Investment Company are in discussions to join a KKR-led consortium pursuing the acquisition of data centre operator STT GDC, in a transaction that could value the company at more than US$10 billion, including debt. If completed, the deal would rank among the largest digital infrastructure transactions in recent months.
According to sources familiar with the matter, the two sovereign wealth funds are expected to participate as minority co-investors alongside KKR and Singapore Telecommunications (Singtel). The talks are ongoing and remain confidential, though an announcement could come as early as this week. Singtel has confirmed that it is in advanced discussions regarding STT GDC, while cautioning that no definitive or binding agreement has yet been reached. (Bloomberg)
KKR and Singtel are existing investors in STT GDC, having acquired a minority stake in 2025 for US$1.3 billion. The company’s parent, ST Telemedia, retains majority ownership and is backed by Singapore state investor Temasek Holdings, which also owns a significant stake in Singtel. To support the transaction, KKR and Singtel have reportedly been in talks with lenders regarding financing of approximately S$5 billion.
Headquartered in Singapore, STT GDC is one of Asia’s largest data centre operators, with more than 100 facilities across 20 markets, including India, Japan, South Korea and Malaysia, as well as a growing footprint in Europe. The company provides co-location, connectivity and related infrastructure services to enterprise and hyperscale clients.
The potential transaction comes amid sustained global investor appetite for data centre assets, driven by rapid growth in artificial intelligence and cloud computing. Recent high-profile deals underscore this trend, although concerns have begun to surface regarding the scale and pace of capital deployment in AI-related infrastructure. Notably, SoftBank Group has recently paused acquisition talks for a US-based data centre operator, highlighting emerging caution among some investors.
Against this backdrop, Mubadala has continued to expand its exposure to artificial intelligence across both infrastructure and application layers. In January 2026, the Abu Dhabi sovereign investor, through its MENA Venture Capital Fund, led a Pre-Series B investment in AppliedAI, an Abu Dhabi-based enterprise AI company. The funding, co-led with Arbor Ventures, is intended to support the global expansion of AppliedAI’s flagship platform, Opus, which enables AI deployment in highly regulated industries such as healthcare, banking, energy and government.
AppliedAI, which employs more than 350 people and operates across the Middle East, Europe and the United States, positions its technology around operational trust, governance and scalability—factors increasingly seen as critical as AI adoption moves from pilot projects to mission-critical applications. Mubadala has described the investment as part of a broader strategy to support regionally rooted technology companies with global ambitions.
Together, Mubadala’s prospective participation in the STT GDC transaction and its backing of enterprise AI platforms reflect a dual-track investment approach: supporting the physical infrastructure underpinning the AI economy while also enabling applied, regulated-use AI solutions at scale.