SoftBank Group, Grab and Petroleum Sarawak Bhd (PETROS) have formalised their collaboration to develop artificial intelligence (AI) infrastructure in Malaysia, with an initial combined seed capital of US$1.85 billion (~RM7.6 billion). The investment will be split between projects in Sarawak and Peninsular Malaysia.
To recap, the companies previously signed the framework agreement in Kuching on 8 October 2026 to explore developing an AI and digital infrastructure platform in Sarawak. The proposed collaboration covers several areas, including AI computing and services, advanced technologies, robotics, as well as local workforce and community development.
This latest development also follows Prime Minister Datuk Seri Anwar Ibrahim’s confirmation last month that SoftBank is behind the previously announced US$50 billion (~RM204 billion) investment in Malaysia’s technology sector. The proposed investment is intended to cover AI, emerging technologies and data centre projects across Sarawak and Peninsular Malaysia. According to Anwar, SoftBank chairman and CEO Masayoshi Son had identified Kuching and several locations in Peninsular Malaysia for the planned developments.
Investment In Both Sarawak And Peninsular Malaysia
According to a joint development agreement (JDA) announced yesterday, the proposed US$1.85 billion investment will comprise US$1 billion for Sarawak and US$850 million for Peninsular Malaysia. The former will receive US$800 million from Softbank, US$100 million from Grab, and another US$100 million from PETROS.
For the Peninsular Malaysia project, Grab will contribute US$650 million, while Softbank will put in the remaining US$200 million. Unlike the Sarawak project, which will have SoftBank as its majority shareholder, Grab will serve as the founding shareholder and lead the development of the peninsula-based initiative.
The proposed funding will be released in stages, subject to the projects achieving key development and customer contract milestones, as well as meeting the necessary closing conditions. The companies also intend to bring in additional investors and hyperscaler customers to support the projects’ development and eventual expansion.
Grab co-founder, chairman and CEO Anthony Tan is expected to oversee the development of both projects while continuing to lead the company. He will also appoint dedicated management teams to handle their day-to-day operations.
Partnership Targets At Least 5GW Of AI Compute Capacity
The collaboration has a long-term target of developing at least five gigawatts of AI compute capacity across both locations. Beyond building computing infrastructure, the parties will also explore opportunities across the wider AI ecosystem, including advanced technologies, robotics and workforce development.
Once fully operational, the facilities are expected to be among the largest AI infrastructure projects of their kind in Asia. Their development will involve close collaboration with the Federal Government and Sarawak Government, with the initiative aligning with the National AI Action Plan 2026–2030 and Sarawak’s Post COVID-19 Development Strategy 2030.
The three companies believe that Malaysia’s growing digital economy and energy resources provide a strong foundation for large-scale AI infrastructure development. PETROS, in particular, will contribute its experience in energy supply and supporting infrastructure, including its involvement in the Sarawak Gas Roadmap and development of the Kuching Low-Carbon Hub. The investment is also expected to support Malaysia’s ambition to become a regional AI hub, while creating high-value employment opportunities and helping Sarawak diversify its economy beyond traditional industries.
(Source: Softbank / The Edge Malaysia)
