Singtel supports potential listing of its data centre business in India, it tells shareholders

Singtel’s data centres in India are part of STT GDC, which it acquired as part of a consortium with global investment firm KKR for $13.8 billion in February.

SINGAPORE – Singtel said it is “supportive” of a potential listing of its data centre business in India to fund further expansion of its digital infrastructure business.

The telco was responding to questions from shareholders and the Securities Investors Association (Singapore), or SIAS, ahead of its annual general meeting on July 29.

In a filing with the Singapore Exchange on July 24, Singtel also answered questions on its capital management strategy and other matters.

In response to a question on the strategy and potential returns from Singtel’s 25 per cent stake in ST Telemedia Global Data Centres (STT GDC), the telco said it views the data centre giant as a strategic investment rather than a passive financial holding, and its minority stake is a “strategic choice”.

Singtel’s data centres in India are part of the STT GDC business, which the telco acquired as part of a consortium with global investment firm KKR for $13.8 billion in February.

The transaction is expected to close in the early part of the second half of 2026.

By investing in STT GDC, Singtel gains exposure to the digital infrastructure sector both regionally and globally.

As the investment will be equity-accounted, Singtel can benefit from STT GDC’s growth without including the company’s debt or financial results in its own consolidated accounts, it said.

Singtel added that this structure limits the impact on its earnings per share while retaining its growth potential, and also allows the telco to execute strategic actions in the future as the data centre sector continues to evolve.

This could entail a potential listing of STT GDC’s India business, which Singtel said would capitalise on “strong public market demand” for digital infrastructure and increase its valuation.

On its subsidiary Digital InfraCo’s data centre business Nxera, Singtel said it expects earnings to continue growing in financial year (FY) 2027 as its data centre in Tuas ramps up, with customers progressively starting operations.