SoftBank Group Corp. and Grab Holdings Limited yesterday announced the signing of joint development agreements with a planned initial seed capital of US$1.85 billion in collaboration with Petroleum Sarawak Berhad (PETROS), to develop AI infrastructure in Malaysia. The US$1.85 billion comprises US$1 billion from SoftBank Group, US$750 million from Grab and US$100 million from PETROS for a multi-year plan to target long-term five gigawatts or more of AI compute capacity across Sarawak and Peninsular Malaysia, said the parties’ joint statement.
The Sarawak project will be jointly developed by SoftBank Group, Grab and PETROS, building on the Framework Agreement signed in Kuching on October 8, 2026. The proposed initial investment in the Sarawak project is US$1 billion, comprising US$800 million from SoftBank Group, US$100 million from Grab and US$100 million from PETROS. Grab has an option to increase its stake, which will reduce SoftBank Group’s stake but with the latter still remaining as the majority shareholder.
For Peninsular Malaysia, the proposed initial seed capital is US$850 million, comprising US$650 million from Grab and US$200 million from SoftBank Group. As the project’s founding shareholder, Grab will lead its development and bring in long-term strategic investors as the project scales. Further development is expected to be funded at the project level through third-party equity and non-recourse project financing.
The proposed investment will be deployed in stages subject to projects achieving key development and customer contract milestones, and the necessary closing conditions. The parties will also seek additional investors and hyperscaler customers to support project development and expansion.
The projects will be developed in close collaboration with Malaysia’s Federal Government and the Sarawak Government, aligning with the National AI Action Plan 2026–2030 (AI Nation 2030) to position Malaysia as an inclusive and sustainable AI nation, as well as Sarawak’s long-term development aspiration under the Post COVID-19 Development Strategy 2030. The facilities will operate in line with Malaysia’s renewable energy use guidelines, and feature high-efficiency infrastructure designed to reduce water use and reliance on local power grids.
The collaboration aims to establish AI infrastructure in Malaysia to meet the growing demand for computing capacity across Southeast Asia and globally. Once fully operational, the facilities are expected to be amongst the largest AI infrastructure of their kind in Asia, providing governments, multinational companies and small businesses with reliable access to advanced computing capabilities.
“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.
“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,” said Anthony Tan, co-founder, Chairman and Chief Executive Officer of Grab.
Tan is expected to oversee the development of both projects and appoint dedicated management teams to run day-to-day operations while continuing to lead Grab and create value for Grab and its ecosystem partners.
SoftBank Group has agreed in principle to a five-year lock-up in respect of Grab shares that will be held directly by an entity within SoftBank Group, with the lock-up to take effect in accordance with the agreed terms and subject to customary exceptions.
Research (e-Conomy SEA 2026) by Google, Temasek and Bain & Company indicates that per capita AI usage across Southeast Asia’s six largest economies is currently around one-tenth of the level in the United States, with regional AI usage projected to scale by up to 60-fold by 2030. Meeting this anticipated demand will require substantial investment in AI infrastructure within the region.