KKR and Singtel are acquiring the Singapore-headquartered data-centre operator.

DBS, OCBC, and UOB are amongst the lenders backing a $5b sustainability-linked loan for funds managed by KKR and Singtel to finance their acquisition of ST Telemedia Global Data Centres (STT GDC).

The three Singapore banks acted as Mandated Lead Arrangers and Bookrunners and Sustainability-Linked Loan Coordinators for the financing, alongside other lenders.

The loan links financing terms to two sustainability performance indicators: the share of renewable energy in STT GDC’s total electricity consumption and the share of green data centres in its portfolio.

The targets support STT GDC’s plans to increase its use of renewable energy and expand its portfolio of green data centres.

Amit Sinha, Group Head of Telecommunications, Media & Technology at DBS, said the expansion of artificial intelligence (AI) and cloud adoption would require more compute infrastructure alongside sustainability measures.

Elaine Lam, Head of Global Corporate Banking at OCBC, said the financing would support STT GDC’s expansion and sustainability targets.

“The rapid expansion of AI and cloud adoption is driving unprecedented demand for high-quality digital infrastructure,” Lam said.

Edmund Leong, Head of Group Corporate Banking at UOB, said data centres had become critical infrastructure for AI, cloud computing, and digital innovation.

“This landmark transaction reflects the growing need for capital to develop the infrastructure that will power the region’s next phase of growth,” Leong said.

STT GDC is headquartered in Singapore and operates across 20 business markets in Asia-Pacific, the UK, and Europe.