*

Deal likely to be among Asia's largest data centre

transactions

*

AI boom driving demand for global data infrastructure

*

A deal could be struck before year-end, source says

(Updates Nov. 6 story with Singtel's comment in paragraph 4-5)

By Yantoultra Ngui and Kane Wu

SINGAPORE/HONG KONG, Nov 6 (Reuters) - KKR & Co ( KKR )

and Singapore Telecommunications are in advanced talks

to buy more than 80% of ST Telemedia Global Data Centres - which

would give them full ownership - for over S$5 billion ($3.9

billion), two people with direct knowledge of the plans said.

KKR currently owns about 14% of the firm while Singtel, the

city-state's biggest telecom operator, has a stake of more than

4%. The rest is held by ST Telemedia, which is wholly owned by

Singapore state investor Temasek Holdings.

If successful, the deal would rank among Asia's biggest data

centre transactions, with the boom in artificial intelligence

creating soaring demand for digital infrastructure.

KKR, ST Telemedia and ST Telemedia Global Data Centres

declined to comment.

Singtel said in a stock exchange filing on Friday that it

regularly reviews business opportunities and is in discussions

as part of a consortium regarding ST Telemedia Global Data

Centres.

There is no certainty the talks will lead to a binding

agreement, it added, and advised investors to exercise caution

in dealing with its securities.

KKR is leading the acquisition, according to one of the

sources, but Reuters was not able to learn the separate

investment amounts planned by the global investment firm and

Singtel.

A deal could be struck before year-end, though final terms

and the timeline could still shift, the same source said. The

sources declined to be identified as the matter is private.

KKR and Singtel first invested S$1.75 billion in the data

centre firm in June 2024.

Founded in 2014 and headquartered in Singapore, ST Telemedia

Global Data Centres describes itself as one of the world's

fastest-growing data centre providers.

It operates more than 100 data centres with over 2 gigawatts

of IT load across over 20 major markets, including Singapore,

India and Japan, as well as Europe via its VIRTUS brand in the

U.K, Germany and Italy, according to its website.

KKR's Asia Pacific infrastructure business, launched in

2019, has about $13 billion in assets under management. Recent

deals include the acquisitions of Australian independent power

producer Zenith Energy in June and poultry farming operator

ProTen in July.