KKR, Singtel & Tata Communications Seek Buyers For Top Asset.
STT GDC India hits the market as shareholders chase global tech expansion value.
STT GDC India’s major shareholders are preparing to offload assets in a deal worth more than $5.5 billion. KKR, Singtel & Tata Communications intend to unlock significant value through this potential transaction.
This move marks the first major portfolio sale in India’s data centre sector. Consequently, hyperscalers & infrastructure providers are closely monitoring developments as they look to expand local capacity.
The company currently operates 34 facilities across 10 major hubs in India. Total capacity reaches an impressive 613 MW to support growing digital demand. Advisors have already joined the process to locate suitable global or domestic buyers. Moreover, financial sponsors & infrastructure funds are likely to show strong interest in the acquisition.
Shareholders previously considered an Indian IPO valued at up to $7 billion earlier this year. However, they are now pursuing a dual-track strategy to rebalance their global capital requirements.
STT GDC India holds approximately 28% of the local market share by revenue. Meanwhile, the sector is expected to grow rapidly as India’s data consumption continues to surge. Reports suggest Asian data centres often trade at 20 times earnings. Owners expect a premium, driven by recent high-profile international acquisitions.
The move aims to help Tata Group streamline its digital plans through new independent platforms. India currently accounts for a fifth of global data but lacks enough local storage capacity.
As a result, total industry investment could exceed $100 billion by the end of 2027. Revenue from Indian operations grew nearly 18% during the previous financial year. However, rising financing costs & market volatility have made public listings more challenging to price.
(Source: ET Telecom)
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