Singapore’s STT GDC eyes $3.1 billion loan, adds to AI debt binge

A group led by KKR and Singtel completed its acquisition of STT GDC in September, after earlier agreeing to buy the data centre company for $6.6 billion.

HONG KONG – Singapore-based data centre operator STT GDC is in talks with banks for a $3.1 billion syndicated loan, according to sources familiar with the matter, as the AI boom continues to fuel demand for debt among companies building the infrastructure.

Banks working on the planned borrowing as global coordinators, mandated lead arrangers and book runners include Standard Chartered, UOB, OCBC Bank and DBS Bank, said the sources, asking not to be identified discussing private details.

The three-year borrowing, which pays an interest margin of 165 basis points over the benchmark Singapore Overnight Rate Average, comes with an extension option of up to two years, the sources said.

A group led by KKR and Singtel completed its acquisition of STT GDC in September, after earlier agreeing to buy the data centre company for $6.6 billion.

DBS, OCBC and UOB earlier participated in a $5 billion sustainability-linked loan for the purchase.

STT GDC’s deal adds to a wave of debt financing driven by the artificial intelligence boom that has also raised worries among investors with the binge pushing up bond yields, increasing scrutiny of what many see as lofty valuations of AI-linked companies.

Globally, the AI borrowing binge has flooded markets with more than US$650 billion (S$831.35 billion) of debt since the start of 2025, according to data compiled by Bloomberg.

Moody’s Ratings expects at least US$3 trillion of data centre-related investments over the next five years.

Established in 2014, STT GDC is one of Asia’s largest data centre operators with facilities across 12 countries, including India, South Korea, Japan and Malaysia, as well as Britain, Germany and Italy, according to its website. BLOOMBERG