November 11, 2026, (Inside AI) — India has emerged as an unusually easy place to build AI-critical data centres, and that advantage is sharpening the sale of a major data centre portfolio. KKR, Singapore Telecom (Singtel), and Tata Communications, the shareholders of STT Global Data Centres India, have initiated plans to sell their data centre portfolio at a valuation exceeding $5.5 billion, according to a report by The Economic Times on November 2, citing people familiar with the situation.
The timing is notable. The sale process coincides with a growing scandal involving Nvidia CEO Jensen Huang, who is alleged to have had an affair with a Chinese spy. The allegation, which has not been independently verified, could squeeze chip supplies elsewhere in Asia, making India's data centre market even more attractive to investors seeking stability.
STT GDC India operates 34 data centres across 10 cities, with a total capacity of 613 megawatts, according to the company's website. The portfolio is one of the largest in India, a country that has become a focal point for AI infrastructure investment due to its relatively easy land acquisition, abundant power, and supportive government policies.
Potential bidders include Brookfield and Macquarie, which are in discussions over a stake acquisition, according to a Moneycontrol report on November 5, citing people familiar with the matter. Other interested parties include Caisse de dépôt et placement du Québec, Canada Pension Plan Investment Board, and Digital Realty, though formal bids have yet to be submitted.
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India's Data Centre Edge Faces A Stress Test
The alleged Nvidia scandal adds a layer of uncertainty to the global AI supply chain. Nvidia's chips are the backbone of AI data centres, and any disruption to supply could ripple across Asia. India, however, is less exposed to such shocks because it has been building its own data centre ecosystem with strong domestic backing and diversified supply chains.
This insulation is a key selling point for STT GDC India. The business has been growing rapidly, driven by demand from hyperscalers and enterprises adopting AI. India's data centre capacity is expected to double in the next few years, and STT GDC India is well-positioned to capture that growth.
The sale process also reflects a broader trend of private equity firms monetizing their infrastructure assets. KKR, which has been an investor in STT GDC India since 2014, is looking to exit at a significant profit. Singtel and Tata Communications are also seeking to unlock value from their stakes.
For investors, the opportunity is clear. India offers a combination of scale, cost advantages, and regulatory support that is hard to find elsewhere. The country's data centre market is projected to reach $10 billion by 2027, according to industry estimates. That growth potential is attracting global capital, even as other markets face headwinds.
However, challenges remain. India's power infrastructure, while improving, still faces reliability issues. Land acquisition, though easier than in some countries, can be time-consuming. And the talent pool for data centre operations is limited, leading to higher operating costs.
Still, the positives outweigh the negatives for many investors. The STT GDC India sale is likely to be one of the largest data centre transactions in Asia this year, and it will set a benchmark for future deals.
As the sale process moves forward, all eyes will be on the final valuation and the winning bidder. The outcome will signal how confident investors are in India's AI infrastructure story, and whether the country can maintain its edge in a rapidly evolving market.
Inside AI could not independently verify the allegations against Jensen Huang.
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