SoftBank Group and Grab Holdings have announced plans to invest an initial combined $1.85 billion to develop artificial intelligence (AI) infrastructure across Malaysia.
The companies, along with Petroleum Sarawak Berhad (PETROS), signed joint development agreements for the projects, with a long-term target of establishing at least five gigawatts of AI computing capacity, according to the announcement.
The proposed initial capital comprises $1 billion from SoftBank, $750 million from Grab, and $100 million from PETROS. The funding will be deployed in stages, subject to development milestones, customer contracts, and other closing conditions.
The Sarawak project will receive an initial investment of $1 billion, with SoftBank contributing $800 million, Grab $100 million and PETROS the remaining $100 million.
Grab has an option to increase its stake, which would reduce SoftBank’s holding, although the Japanese group would remain the majority shareholder.
For the Peninsular Malaysia project, the proposed initial investment is $850 million, comprising $650 million from Grab and $200 million from SoftBank.
Grab will lead development as the founding shareholder and bring in long-term strategic investors as the project expands.
Further development is expected to be financed through third-party equity and non-recourse project financing at the project level.
The companies will also seek additional investors and hyperscaler customers to support the development and expansion of the facilities, which are intended to serve governments, multinational companies, and small businesses.
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,” Son added.
Grab co-founder and chief executive Anthony Tan is expected to oversee both projects and appoint dedicated management teams for their day-to-day operations while continuing to lead the ride-hailing and delivery group.
“This infrastructure will allow us to accelerate the development of localized AI solutions for our communities,” Tan said.
SoftBank has also agreed in principle to a five-year lock-up on Grab shares held directly by an entity within the Japanese group, subject to agreed terms and customary exceptions.
The initiative supports Malaysia’s AI Nation 2030 ambition and is expected to create high-value employment opportunities in engineering, design and technical fields.
The parties will also explore opportunities in advanced manufacturing, according to the announcement.
