Proposed $1.85 billion seed investment for AI projects in Malaysia
Key Facts
SoftBank, Grab and Malaysian oil company PETROS announced joint development agreements on November 9 that include proposed initial seed capital of $1.85 billion for AI infrastructure projects in Malaysia. The plan covers Sarawak and the Malaysian Peninsula, targeting long-term AI computing capacity of 5 gigawatts or more, according to Grab’s announcement. The company said the amount represents proposed joint seed funding, while investments will be made in stages. The announcement ties the deployment of funds to progress in project development, the signing of customer contracts and the fulfillment of closing conditions. The parties also intend to seek additional investors and hyperscale cloud customers.
The proposed joint seed funding is divided into a $1 billion contribution from SoftBank, $750 million from Grab and $100 million from PETROS. The program comprises two separate projects, one in Sarawak and the other on the Malaysian Peninsula, with contributions and the development lead differing between them. The full amount therefore does not go to Sarawak, but covers both projects under the broader Malaysia plan. The proposed figures make Grab the largest contributor to the Peninsula project, while SoftBank provides the largest share of funding allocated to Sarawak. The amounts remain tied to implementation stages, development conditions and customer contracts set out in the agreements.
The announcement allocated proposed initial investment of $1 billion to the Sarawak project, comprising $800 million from SoftBank, $100 million from Grab and $100 million from PETROS. SoftBank will retain the largest shareholder stake in the project, with Grab able to increase its stake, the company said. The proposed seed capital for the Malaysian Peninsula project totals $850 million, split between $650 million from Grab and $200 million from SoftBank. Grab will lead development of the Peninsula project and seek strategic investors over the long term as the project expands. The arrangement gives the two projects different leads, rather than assigning the entire program to one party.
Grab said Chief Executive Anthony Tan is expected to oversee development of both projects, with dedicated management teams appointed for each while he continues to lead the company. SoftBank also agreed in principle to a 5-year lock-up period on Grab shares held directly by one of its affiliates. This commitment is subject to agreed terms and customary exceptions. The agreements therefore include governance and shareholding arrangements alongside infrastructure funding. The announcement did not specify a start date for operations or a timeline for completion in the available facts.
The companies said the facilities will comply with Malaysia’s renewable energy use guidelines and adopt highly efficient infrastructure designed to reduce water consumption and reliance on local power grids. The plan comes amid expanding investment in data centers in the country: Malaysia recorded data-center-related investments of 385.7 billion Malaysian ringgit between 2021 and the first half of 2026, according to the Malaysian Investment Development Authority. Prime Minister Anwar Ibrahim said the alliance’s investment reflects global confidence in Malaysia’s ability to develop and use AI, and supports its ambition to become an AI nation by 2030. The deputy minister of investment, trade and industry said the next phase should focus on turning digital infrastructure growth into AI adoption, local innovation, skills and higher-value jobs. These remarks link infrastructure expansion with the economic use and local capabilities the government aims to build.