SoftBank Group and Grab have signed joint development agreements with Petroleum Sarawak Berhad (PETROS) to develop AI infrastructure in Malaysia.
The companies have proposed US$1.85 billion in initial combined seed capital as the first stage of a multi-year build-out targeting five gigawatts or more of AI compute capacity across Sarawak and Peninsular Malaysia.
SoftBank will contribute US$1 billion, Grab US$750 million and PETROS US$100 million.
The investment will be deployed in stages as projects reach key development and customer contract milestones and meet the necessary closing conditions.
The companies will seek additional investors and hyperscaler customers as the projects expand.
Once fully operational, SoftBank, Grab and PETROS will use the facilities to serve governments, multinational companies and small businesses across the region.
How SoftBank and Grab are splitting the two projects
SoftBank, Grab and PETROS will jointly develop the Sarawak project, building on a framework agreement they signed in Kuching on 8 October.
The project has a proposed initial investment of US$1 billion, comprising US$800 million from SoftBank and US$100 million each from Grab and PETROS.
Grab has an option to increase its stake in the Sarawak project. Exercising the option would reduce SoftBank’s stake, although SoftBank would remain the majority shareholder.
Grab will lead the Peninsular Malaysia project as its founding shareholder, contributing US$650 million of the proposed US$850 million initial seed capital.
SoftBank will provide the remaining US$200 million. Grab also plans to bring in long-term strategic investors as the project scales.
The project will rely on third-party equity and non-recourse project financing to fund further development.
“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,”
said Masayoshi Son, Chairman and CEO of SoftBank Group Corp.
“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,”
said Anthony Tan, Co-founder, Chairman and CEO of Grab.
AI usage in Southeast Asia could grow 60-fold by 2030
The companies cited the e-Conomy SEA 2026 report by Google, Temasek and Bain & Company, which estimates that per capita AI usage across Southeast Asia’s six largest economies is currently around one-tenth of the level in the US.
The report projects that regional AI usage could grow by up to 60 times by 2030.
The projects will be developed in collaboration with Malaysia’s Federal Government and the Sarawak Government.
The projects will support the National AI Action Plan 2026–2030 (AI Nation 2030). They will also align with Sarawak’s Post COVID-19 Development Strategy 2030.
The companies said the facilities will follow Malaysia’s renewable energy use guidelines. They will also feature high-efficiency infrastructure to reduce water consumption and reliance on local power grids.
Governance and the SoftBank lock-up
Anthony Tan will oversee the development of both projects and appoint dedicated management teams to handle day-to-day operations while continuing to lead Grab. Grab’s board has reviewed and approved his affiliation with the projects.
SoftBank has agreed in principle to a five-year lock-up on Grab shares held directly by an entity within SoftBank Group, subject to customary exceptions.
Beyond AI infrastructure, the companies will also explore other areas of mutual interest in Malaysia, including advanced manufacturing.
The initiatives will create high-value jobs in engineering, design and technical fields while advancing Malaysia’s technology development goals.
Featured image credit: Edited by Fintech News Malaysia, based on image by Grab, European Commission and WangXiNa via Magnific
