STT GDC India sale: KKR, Singtel, Tata seek over $5.5 billion

The owners of STT Global Data Centres India, described in one report as one of India's top three colocation providers, are preparing to sell the business at a valuation of more than $5.5 billion, according to reports published around 2 November 2026. The shareholders are investment firm KKR, Singapore telecom group Singtel and Tata Communications. Advisers have been hired, and possible buyers include global data centre operators, Indian conglomerates and financial investors. STT GDC India runs 34 data centres across 10 locations with 613 megawatts (MW) of capacity. Tata Communications, which holds 26%, is expected to keep a minority stake, with a final decision likely in the coming weeks. The companies have not made a formal announcement.

Data centres are the buildings that house the computers behind banking apps, video streaming, government services and, increasingly, artificial intelligence. Demand for them in India has been rising with the spread of digital services and AI, and many new projects have been announced. A sale of STT GDC India has been described as the country's largest data centre portfolio sale, and it would show what investors are willing to pay for capacity that is already running.

For enterprises, ownership matters because colocation providers set prices and expansion plans. A buyer with deep pockets could accelerate new capacity in cities where companies are short of data centre space; a buyer focused on returns might raise prices. Either way, the deal would put a price tag on Indian data centre capacity at a time when many new projects are being announced.

The deal also reflects a reshaping of ownership after KKR and Singtel took control of the parent company earlier this year. Selling the India arm separately would let them realise value from one of the group's largest markets. Tata Communications keeping a stake would keep an Indian partner in the business.

The reported valuations differ, and the sale is not certain. Final numbers will depend on bids, the buyer's plans for expansion, and terms agreed with Tata Communications.

Peepals calculation: At $5.5 billion for 613 MW, the implied value is about $9 million per MW of capacity ($5,500 million / 613 ≈ $8.97 million). Tata Communications' 26% would be worth about $1.43 billion at that valuation (0.26 × $5.5 billion). On the reported FY25 figures, profit after tax was about 7.8% of operating income (183 / 2,354 ≈ 0.078). Our calculation from the reported figures.

Short-term: Bidders will study the business in the coming weeks, and Tata Communications is expected to decide how much it keeps.

Long-term: The final price will act as a benchmark for valuing other Indian data centre operators, and the buyer's plans will shape capacity for enterprises and cloud users.

Who is affected: businesses that rent data centre space, cloud and AI companies, KKR, Singtel and Tata Communications shareholders, and rival operators.

What to watch next: Tata Communications' decision on its stake, which reports say is likely in the coming weeks, and a formal announcement of a buyer.

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