Malaysia – SoftBank Group and Grab Holdings have signed joint development agreements with Petroleum Sarawak Berhad (PETROS) to build AI infrastructure in Malaysia, backed by US$1.85 billion in initial combined seed capital. The companies announced the deal on 9 November.
The plan targets five gigawatts or more of AI compute capacity across Sarawak and Peninsular Malaysia over the long term. It forms part of a multi-year build-out.
SoftBank Group will contribute US$1 billion of the seed capital, while Grab will put in US$750 million and PETROS US$100 million. The companies said the funds will be released in stages, subject to development and customer contract milestones and closing conditions.
Once fully operational, the facilities are expected to rank among the largest AI infrastructure of their kind in Asia, according to the companies. They would give governments, multinational companies and small businesses access to advanced computing capabilities.
The parties will also seek additional investors and hyperscaler customers to support development and expansion.
The Sarawak project will be developed jointly by all three partners, building on a Framework Agreement signed in Kuching on 8 October 2026. The initial investment stands at US$1 billion, compromising US$800 million from SoftBank Group, US$100 million from Grab and US$100 million from PETROS.
Grab holds an option to increase its stake in the Sarawak project, which would reduce SoftBank Group’s holding. SoftBank Group would nonetheless remain the majority shareholder.
In Peninsular Malaysia, the initial seed capital totals US$850 million, made up of US$650 million from Grab and US$200 million from SoftBank Group. As founding shareholder, Grab will lead development and bring in long-term strategic investors as the project scales.
Further development is expected to be funded at project level through third-party equity and non-recourse project financing.
On the technology side, the companies said the facilities will operate in line with Malaysia’s renewable energy use guidelines. They will also use high-efficiency infrastructure designed to reduce water use and reliance on local power grids.
The companies cited research by Google, Temasek and Bain & Company indicating that per capita AI usage across Southeast Asia’s six largest economies is about one-tenth of the level in the United States. The same research projects regional AI usage to scale by up to 60-fold by 2030.
Masayoshi Son, Chairman and CEO of SoftBank Group Corp., said, “AI infrastructure will power the next wave of growth, and Malaysia has the talent and ambition to help lead it. Together with Grab, we will build the capacity needed to support Malaysia’s digital ambitions and accelerate AI innovation across Southeast Asia.”
Anthony Tan, co-founder, Chairman and Chief Executive Officer of Grab, said, “Grab’s mission is and always has been, the technological advancement and economic development of Southeast Asia. Southeast Asia is one of the world’s fastest-growing digital economies, and Grab is at the forefront of developing AI solutions for the region.”
“Together with SoftBank Group, we plan to build critical AI infrastructure in Malaysia, where Grab began, for all of Southeast Asia. This infrastructure will allow us to accelerate the development of localized AI solutions for our communities. Through this partnership, we can drive faster regional AI development and adoption, bringing its transformative benefits to many millions of people, while contributing to Malaysia’s economy through the creation of high-value jobs and AI upskilling,” Tan added.
The projects will be developed with Malaysia’s Federal Government and the Sarawak Government. They align with the National AI Action Plan 2026–2030 (AI Nation 2030) and Sarawak’s Post COVID-19 Development Strategy 2030.
Beyond AI infrastructure, the parties will explore other areas of mutual interest, including advanced manufacturing in Malaysia. They expect these efforts to create high-value jobs in engineering, design and technical fields, and to support the National Fourth Industrial Revolution (4IR) Policy and the Malaysia Digital Economy Blueprint (MDEB).
Tan is expected to oversee development of both projects and appoint dedicated management teams to run day-to-day operations. He will continue to lead Grab, and the Grab Board has reviewed and approved his affiliation with the projects.
Separately, SoftBank Group has agreed in principle to a five-year lock-up on Grab shares held directly by an entity within the group. The lock-up will take effect under the agreed terms, subject to customary exceptions.
