India's rapidly growing data centre industry could witness its biggest-ever acquisition deal, with STT Global Data Centers India Private Limited (STT GDC India) reportedly being put up for sale. The company, which is among India's leading data centre operators, has attracted attention from global investors and major business groups.

According to media reports, the proposed transaction could be valued at more than $5.5 billion, equivalent to approximately ₹52,000 crore.

The company's major stakeholders, including private equity firm KKR, Singapore-based Singtel and Tata Communications, have reportedly initiated the process of exploring a sale of its Indian operations.

The development comes at a time when demand for data centre infrastructure is increasing rapidly due to artificial intelligence, cloud computing and growing digital services.

1. STT GDC India Has 34 Data Centres Across 10 Cities

STT GDC India is one of the country's leading co-location data centre providers. Its infrastructure supports businesses that require secure facilities to store, process and manage large volumes of digital information.

The company currently operates 34 data centres across 10 Indian cities, with a reported total capacity of 613 MW.

Its large infrastructure network makes it an important player in India's expanding digital ecosystem.

The proposed transaction is particularly significant because it could represent the first sale of such a large data centre portfolio in the Indian market.

2. KKR, Singtel and Tata-Linked Stakeholders Exploring a Sale

The proposed transaction involves major shareholders and stakeholders connected with STT GDC India.

The sale process reportedly follows a dual strategy aimed at managing global investment requirements while allowing Tata Group to realign its data centre business plans.

Financial and transaction advisers have reportedly been appointed to explore potential buyers.

These could include:

• International data centre operators.

• Large Indian business groups.

• Global infrastructure investment funds.

• Private equity investors.

• Companies planning to enter India's data centre market.

The final buyer and transaction structure have not yet been confirmed.

3. Why Is the Deal Valued at More Than ₹52,000 Crore?

The valuation reflects the increasing importance of data centre infrastructure in the global technology industry.

Data centres are essential for cloud computing, artificial intelligence applications, online platforms and digital transactions.

According to industry estimates cited in the report, data centre businesses in the Asia-Pacific region can attract valuations of approximately 18–20 times their contracted EBITDA.

An important international comparison is the 2024 acquisition of Australian data centre operator AirTrunk by Blackstone and the Canada Pension Plan Investment Board (CPPIB).

The transaction was valued at approximately $16 billion, with a reported EBITDA multiple of around 22–23 times.

STT GDC India is reportedly seeking a valuation that reflects the strategic importance and growth potential of its infrastructure portfolio.

4. Tata and STT Partnership Started in 2016

The relationship between Tata Communications and STT began in 2016, when Singapore-based ST Telemedia entered the Indian data centre market.

At that time, ST Telemedia acquired a 74% stake in Tata Communications' Indian data centre business, while Tata Communications retained the remaining 26%.

The transaction included 14 data centres and valued the business at approximately ₹3,140 crore.

Over the years, the partnership expanded its infrastructure and market presence.

According to the report, the Indian business is structured as a 74:26 joint venture between STT Telemedia and Tata Communications.

Meanwhile, KKR and Singtel have also been involved in the ownership structure of the parent STT GDC business.

5. Tata Group Is Also Planning an Independent Data Centre Platform

Another important development is Tata Group's plan to establish an independent data centre platform in collaboration with TPG and its flagship technology company, TCS.

This move indicates that Tata Group is looking to strengthen its presence in the rapidly expanding digital infrastructure sector.

In September 2024, Tata Communications announced an investment plan of ₹26,000 crore over five to six years to add approximately 550 MW of data centre capacity.

The proposed expansion reflects the growing demand for high-capacity computing infrastructure in India.

6. Revenue Increased, but Profit Declined

STT GDC India's financial performance presents an interesting picture.

According to figures cited from Tata Communications' annual report, the Indian business recorded operating revenue of ₹2,747.5 crore in FY2026, compared to ₹2,331.8 crore in the previous financial year.

This represents an increase of approximately 17.8%.

However, profitability declined during the same period.

While revenue increased, profit declined by approximately 22.9%. Meanwhile, net assets grew by around 30.7%.

The figures indicate that the business is expanding its infrastructure and revenue base, although profitability remains an important area to monitor.

7. Long-Term Contracts Make the Business Attractive

One of the major advantages of data centre businesses is their ability to secure long-term contracts with large customers.

Approximately 75% of STT GDC India's revenue reportedly comes from hyperscalers. These companies operate large cloud and computing infrastructure and generally enter into contracts lasting between seven and 15 years.

The company's reported capital expenditure requirement for FY2026-27 is approximately ₹6,000–6,100 crore.

This expenditure is expected to be funded through a combination of debt, internal cash generation and equity.

Over FY2021–FY2025, the company's operating revenue reportedly recorded a compound annual growth rate of approximately 15%.

Its top 10 customers contribute around 76% of total revenue, highlighting both the importance of large enterprise clients and the concentration of its customer base.

8. India's Data Centre Industry Attracts Global Investors

The proposed transaction highlights the growing interest of international investors in India's digital infrastructure market.

With increasing adoption of artificial intelligence, cloud platforms, online payments and digital services, demand for data storage and computing capacity is rising.

Data centres require significant investment in land, electricity, cooling systems, networking and security infrastructure. This makes established operators with existing facilities particularly attractive to investors.

STT's wider international business also has a significant presence across Asia and Europe, with more than 100 data centres and capacity exceeding 2 GW.

Final Words

The proposed sale of STT GDC India's operations could become one of the biggest transactions in India's data centre industry, with an estimated valuation exceeding ₹52,000 crore.

The involvement of KKR, Singtel and Tata Communications makes the development particularly significant for the country's digital infrastructure sector.

However, the transaction is still at the exploration stage, and the final valuation, buyer and deal structure remain uncertain.

If completed at the reported valuation, the transaction could mark an important milestone in India's growing data centre investment market.