Grab, SoftBank to invest $1.85bn in Malaysia AI infrastructure

SoftBank, Grab and PETROS have finalized their joint venture to build AI infrastructure in Malaysia, committing a total of US$1.85 billion (~RM7.6 billion) in seed capital. The investment will be divided between projects in Sarawak and Peninsular Malaysia. This collaboration builds upon a framework agreement signed in Kuching on October 8, 2026, aiming to create an AI and digital infrastructure platform in Sarawak.

The proposed collaboration spans AI computing and services, advanced technologies, robotics, and community development initiatives. The announcement coincides with Prime Minister Anwar Ibrahim's confirmation of SoftBank's significant US$50 billion (~RM204 billion) investment into Malaysia's technology sector. SoftBank chairman Masayoshi Son had identified Kuching and other Peninsular Malaysia locations for the planned developments.

The US$1.85 billion investment will be distributed as US$1 billion for Sarawak and US$850 million for Peninsular Malaysia. SoftBank will lead the Sarawak project with US$800 million, while Grab will spearhead the Peninsular Malaysia project with US$650 million. PETROS will contribute US$100 million to both projects. The funding will be distributed in stages based on project milestones and completion conditions.

The companies aim to attract more investors and hyperscaler partners to support the projects' growth. The initiative targets at least five gigawatts of AI compute capacity across both regions, aligning with Malaysia's National AI Action Plan 2026–2030 and Sarawak's Post COVID-19 Development Strategy 2030. PETROS brings its expertise in energy supply and infrastructure, including the Sarawak Gas Roadmap and Kuching Low-Carbon Hub projects.

This investment is expected to bolster Malaysia's digital economy, create high-value jobs, and help Sarawak diversify its economy away from traditional sectors.