Sarawak Targets AI Computing Project With Proposed $1 Billion Seed Capital
Key Facts
PETROS, SoftBank and Grab have signed a joint development agreement for an AI infrastructure project in Sarawak, with proposed combined seed capital of $1 billion, The Edge Malaysia reported on November 9, 2026. The agreement marks a shift from an earlier exploratory understanding to a joint development framework for the project. The funding will not be deployed all at once; it will be allocated in stages, subject to key development milestones, customer contracts and closing conditions. In the long term, the alliance aims to build AI computing capacity of five gigawatts. The cooperation also covers computing and AI services, advanced technologies and robotics, as well as workforce and local community development.
SoftBank’s proposed contribution is $800 million, compared with $100 million from Grab and $100 million from PETROS, according to The Edge. SoftBank would therefore provide the largest share of the announced seed capital, while the other two parties would contribute equal amounts. The total remains proposed funding tied to the project’s progress and conditions, rather than a fully deployed investment at the time of the announcement. The agreement links the release of funds to development progress and customer contracts, making implementation milestones central to activating the financing. The available information did not specify a timeline for completing those milestones.
In a joint statement carried by The Edge, the parties said they would seek additional investors and hyperscale cloud computing customers to support development and long-term expansion. This indicates that the project’s funding and customer base remain part of the next steps. The parties expect the facilities, once fully operational, to be among the largest AI infrastructure facilities of their kind in Asia. The project combines the goal of building substantial computing capacity with broader areas including advanced technologies and robotics. The parties also included workforce and local community development in the scope of cooperation, linking the project to its local impact as well as its technical infrastructure.
The companies signed a framework agreement on October 8, 2026, to explore developing a digital infrastructure and AI platform in Sarawak. That phase called for preparing a roadmap for the platform’s phased development and exploring broader opportunities across the AI value chain, according to SoftBank. The company said its contribution includes its global technology and AI ecosystem, along with expertise in infrastructure, advanced computing, semiconductors and physical AI. Grab brings its Southeast Asian digital ecosystem, applied AI capabilities, and regional customer and partner networks. PETROS adds its expertise in Sarawak’s energy resources, the Sarawak Gas Roadmap initiative and the Kuching Low-Carbon Hub, including the development of energy supply solutions and enabling infrastructure.
PETROS is implementing the Sarawak Gas Roadmap to strengthen energy security and support industrial expansion in Sarawak, and is also a lead developer of a low-carbon industrial hub in Kuching, according to The Edge. This puts local energy and infrastructure among the project’s components, alongside the partners’ technological and commercial contributions. Against the backdrop of Malaysia’s investment environment, Bank Negara Malaysia kept its overnight policy rate at 2.75% in its November 5, 2026, decision. The bank did not link its decision to the project. It said strong exports and continued domestic demand supported growth in the third quarter of 2026, and that this momentum could lift Malaysia’s economic growth to more than 5% in 2026.
The bank added that the global technology cycle and strong tourism spending would support the external sector, while stable labor market conditions and investment would underpin domestic demand. These projections are part of an economic context separate from the project announcement and are not a stated reason for it. On prices, the bank expected headline and core inflation to rise in 2027 while remaining contained, citing pressure from geopolitical developments, higher global commodity prices and adverse weather. The bank set January 21, 2027, as the date of its next monetary policy decision. In the stock market, SoftBank’s American depositary receipts, trading under the ticker SFTBY, closed at $11.47 on November 6, 2026, according to EL7 data.