KKR, Singtel and the Tata Group plan to sell STT Global Data Centres India (STT GDC India). They are its key shareholders. The sale could be one of the largest data centre deals in India.
According to a report in The Economic Times, the multi-billion-dollar sale comes amid a global rush to add data centre capacity. Hyperscalers and infrastructure providers are driving that rush. STT GDC India runs 34 data centres across 10 centres, with a total capacity of 613 MW.
A Dual-Track Process
The shareholders have hired advisers to explore a sale. They are targeting global players that operate in India or are considering entry, large Indian conglomerates and financial investors. The financial investors include infrastructure-focused funds and private equity firms.
The sale is one half of a dual-track process. The report says it aims to rebalance capital needs and help the Tata Group streamline its data centre plans. The shareholders also began to weigh an Indian initial public offering (IPO) around July and hired advisers for it. The business was then valued at $6 billion to $7 billion.
Price and Benchmarks
Sources said STT GDC is seeking at least $5 billion in a sale. That is slightly below its potential IPO valuation. Data centres in Asia-Pacific have been valued at 18 to 20 times contracted earnings before interest, taxes, depreciation and amortisation (EBITDA). Blackstone and CPPIB bought Australia’s AirTrunk for $16 billion in September 2024. That valued the company at 22 to 23 times contracted EBITDA.
Who Owns What
KKR and Singtel announced a $5.2 billion cash buyout in February to take full control of ST Telemedia Global Data Centres. It implied an enterprise value of $10.2 billion. KKR owns 75 per cent of STT GDC now, and Singtel holds the rest.
Their Indian business is a 74:26 joint venture between STT Telemedia and Tata Communications. STT entered India in 2016. It bought a controlling 74 per cent stake in Tata Communications’ data centre business, and Tata Communications kept 26 per cent. The business was then valued at Rs 3,140 crore and had 14 data centres.
Tata Communications put in another Rs 319.4 crore in STT during FY26 to keep its stake. In September 2024, STT GDC announced a Rs 26,000 crore investment commitment. It plans to add 550 MW of capacity over five to six years.
Tata Takes a Separate Path
The Tata Group has separately decided to pursue its data centre plans through an independent platform. TPG and group flagship TCS are involved.
