Kuala Lumpur:SoftBank Group Corp and Grab Holdings Ltd have announced the signing of joint development agreements for an initial seed capital of $1.85 billion to develop artificial intelligence (AI) infrastructure in Malaysia alongside Petroleum Sarawak Bhd (Petros).
According to BERNAMA News Agency, the combined investment is part of a multi-year plan to establish AI compute capacity across Sarawak and Peninsular Malaysia, targeting a long-term goal of five gigawatts or more. The investment includes contributions of $1 billion from SoftBank Group, $750 million from Grab, and $100 million from Petros.
The collaboration aims to provide AI infrastructure in Malaysia to meet the rising demand for computing capacity in Southeast Asia and globally. Once operational, the facilities are expected to rank among the largest AI infrastructures in Asia, offering reliable advanced computing capabilities to governments, multinational companies, and small businesses.
The proposed investment will be rolled out in stages, contingent on achieving key development and customer contract milestones, as well as meeting necessary closing conditions. The projects align with Malaysia's National AI Action Plan 2026-2030 and Sarawak's Post COVID-19 Development Strategy 2030, aiming to position Malaysia as a sustainable AI nation.
Grab CEO Anthony Tan highlighted that the infrastructure will accelerate the development of localized AI solutions, fostering regional AI advancement and contributing to Malaysia's economy through job creation and AI upskilling. The facilities will adhere to renewable energy use guidelines and feature high-efficiency infrastructure to minimize water use and local power grid reliance.
Beyond AI infrastructure, the parties plan to explore advanced manufacturing in Malaysia, with initiatives expected to create high-value employment and support Malaysia's National Fourth Industrial Revolution Policy and Digital Economy Blueprint. These efforts aim to accelerate advanced technology adoption, enhance productivity, and strengthen Malaysia's workforce capabilities.