KKR, Singtel and Tata Communications Weigh $5.5 Billion STT GDC India Sale
The proposed STT GDC India sale could become one of the largest data-centre transactions in the country. KKR, Singtel and Tata Communications’ shareholder interests are linked to plans to sell the Indian operations of STT Global Data Centres India at a valuation exceeding $5.5 billion, The Economic Times reported on November 2, citing people familiar with the matter. The process is at an exploratory stage; no buyer has been announced and no transaction has been completed.
The business operates 34 data centres across 10 locations, with a combined capacity of 613 megawatts (MW). The potential sale comes as cloud providers and artificial intelligence companies seek more computing capacity, increasing investor interest in data-centre infrastructure.
STT GDC India sale could attract global and domestic bidders
The shareholders have appointed advisers to explore a sale, with potential buyers expected to include international data-centre operators, Indian conglomerates, infrastructure funds and private equity investors. The reported valuation is above $5.5 billion, while sources cited by the newspaper said the shareholders expect at least $5 billion.
The sale is one part of a dual-track process. The shareholders had also been evaluating an Indian initial public offering (IPO), with a valuation target of $6 billion to $7 billion. The IPO option was reportedly being considered from around July, and advisers had been appointed for that process as well. Keeping both routes open would allow the owners to compare private bids with the value achievable through a listing.
Who owns STT GDC India?
STT GDC India is a joint venture in which ST Telemedia Global Data Centres holds a 74% stake and Tata Communications owns the remaining 26%. KKR and Singtel control the global parent, STT GDC, with KKR holding 75% and Singtel 25%, following their acquisition of the remaining ownership interests in 2026. This structure means the Indian business is not directly divided into equal stakes among the three names associated with the proposed sale.
STT entered India in 2016 by acquiring a controlling stake in Tata Communications’ data-centre business. The operation has since expanded from 14 facilities to 34. Tata Communications announced a ₹26,000 crore investment commitment in September 2024 to add 550 MW of capacity over five to six years.
AI and cloud demand raise the value of data-centre assets
Hyperscale customers account for about 75% of STT GDC India’s revenue, with contracts typically running for seven to 15 years, The Economic Times reported. The company recorded operating revenue of ₹2,747.5 crore in FY26, up 17.8% from the previous year. However, profit fell 22.9% to ₹126 crore, while net assets rose to ₹5,760.5 crore.
The company’s scale and long-term customer contracts could appeal to investors seeking exposure to the growth of cloud computing and AI infrastructure. Data-centre operators need substantial capital to secure land, power, cooling systems and network connections before adding capacity. An established portfolio can offer a faster route into the market than building facilities from scratch.
A major test for India’s data-centre market
A transaction above $5.5 billion would provide a significant valuation reference for India’s data-centre sector. It would also come as major domestic groups and international operators plan capacity expansions to serve cloud platforms, AI workloads and enterprise customers.
The final outcome remains uncertain. The shareholders could proceed with a private sale, pursue an IPO or reassess both options depending on investor interest and market conditions. Until a buyer, agreed price and binding transaction are announced, the proposed STT GDC India sale should be treated as a process under consideration rather than a completed deal.
