SoftBank and Grab sign agreements for $1.85 billion Malaysian AI buildout

SoftBank Group and Grab have signed joint development agreements to build AI infrastructure in Malaysia, with PETROS joining a proposed $1.85 billion initial investment. Announced November 9, 2026, the initiative spans Sarawak and Peninsular Malaysia and targets at least five gigawatts of computing capacity over the long term—not capacity available today.

Capital first, capacity in stages

The infrastructure will include an AI data center: the physical computing facilities behind AI services. The partners intend to develop the projects with global investors and hyperscalers—large cloud-computing providers—and seek additional customers to support expansion. The five-gigawatt figure is a multi-year target across both regions, rather than the capacity promised by the initial seed investment.

The proposed capital will be released in stages as projects meet development and customer-contract milestones, subject to closing conditions. Although the development agreements contain binding development and funding obligations, the joint ventures and investment terms still require definitive agreements. That distinction separates the signed development commitments from completed investments in the facilities themselves.

US$1 billionSoftBank Group

SoftBank Group's proposed contribution across the two projects.

US$750 millionGrab

Grab's proposed contribution across the two projects.

US$100 millionPETROS

Petroleum Sarawak Berhad's proposed contribution to the Sarawak project.

Two projects, different lead shareholders

Sarawak accounts for $1 billion of the proposed initial investment. SoftBank would provide $800 million, with Grab and Petroleum Sarawak Berhad, known as PETROS, contributing $100 million each. This project builds on a framework agreement signed in Kuching on October 8, 2026. Grab has an option to increase its stake, reducing SoftBank's holding while leaving SoftBank as majority shareholder.

The Peninsular Malaysia project reverses that balance. Grab would supply $650 million of its $850 million seed capital, with SoftBank contributing $200 million. Grab will lead development as founding shareholder and bring in long-term strategic investors as the project grows. Further development is expected to use outside equity and project-level borrowing that does not give lenders recourse to the sponsors beyond the project.

Grab co-founder and CEO Anthony Tan is expected to oversee both projects, appointing dedicated management teams for daily operations while continuing to lead Grab. Its board has approved his affiliation with the projects. Separately, Kyodo reported that SoftBank said it would fund its participation with cash on hand rather than issue bonds.

Regional access depends on securing the basics

The partners say the completed facilities would serve governments, multinational companies and small businesses, meeting computing demand across Southeast Asia and globally. Tan linked the infrastructure to developing localized AI services for the region. The projects will be developed with Malaysia's federal government and the Sarawak government, supporting the country's AI Nation 2030 ambition.

The companies also promise high-efficiency facilities designed to reduce water use and reliance on local power grids, operating under Malaysia's renewable-energy guidelines. Those are design intentions, not measured operating results. Their announcement identifies several practical risks that could prevent the projects from proceeding at the intended scale:

• Securing suitable land, reliable and competitively priced electricity, and connectivity.
• Obtaining government approvals, permits and financing, alongside sufficient contracted customer demand.
• Establishing that the projects remain technically and commercially feasible as AI computing demand, pricing and technology change.