SoftBank Group, Singapore-based Grab Holdings and Malaysian oil and gas company Petroleum Sarawak have agreed to invest $1.85 billion to develop artificial-intelligence computing capacity in Malaysia. The three companies signed joint development agreements on 9 November, Dow Jones reported.

The initial seed capital of $1.85 billion is made up of $1 billion from SoftBank Group, $750 million from Grab and $100 million from Petroleum Sarawak, also known as Petros. The investment forms part of a multiyear plan to develop AI infrastructure, with a long-term target of five gigawatts or more of computing capacity.

Two projects, two leaders

The money will be split between two projects. The larger, in Sarawak, the Malaysian state on the island of Borneo, starts with $1 billion in seed capital, of which SoftBank will put in $800 million and Grab and Petros $100 million each. SoftBank will lead the Sarawak project and hold a majority stake, and Grab has an option to raise its holding, although SoftBank would remain the majority owner.

The second project, in Peninsular Malaysia, starts with $850 million. Grab will provide $650 million and lead it as founding shareholder, while SoftBank adds $200 million. Grab co-founder and chief executive Anthony Tan is expected to oversee the development of both projects and appoint dedicated management teams, while continuing to lead Grab.

The proposed investment will be deployed in stages, subject to projects achieving key development and customer contract milestones. The parties will also seek additional investors and customers to support project development and expansion, and plan to bring in large cloud customers to fund further growth.

From talks to a signed deal

The agreements build on a framework deal that SoftBank founder Masayoshi Son signed in Kuching on 8 October with Tan and Petros group chief executive Janin Girie. That deal committed the three only to study an AI and digital infrastructure platform in Sarawak and draw up a roadmap for phased development, setting no capacity target and no investment figure. The agreements signed on 9 November are the first firm figures attached to that plan, according to Billionaires Africa.

Petros brings energy supply and land to the venture. The company manages Sarawak's gas development roadmap and is master developer of the Kuching Low-Carbon Hub, giving the project access to the power that large AI data centres need. Girie said the deal was about preparing Sarawak for its next phase of economic transformation beyond oil and gas.

Malaysia's AI ambitions

The projects are aligned with Malaysia's National AI Action Plan 2026-2030, known as AI Nation 2030, and with Sarawak's Post COVID-19 Development Strategy 2030. Malaysia has become a key destination for data centre and AI investments in Southeast Asia, thanks partly to its relatively low electricity costs and abundant land.

Malaysian Prime Minister Anwar Ibrahim said in October that Son was planning $50 billion of AI and technology-related investments in the country, with the capital injection focused on AI, emerging technologies and data centres. The $1.85 billion announced on 9 November is the first firm commitment attached to that wider ambition.

Son said AI infrastructure would power the next wave of growth and that Malaysia had the talent and ambition to help lead it. Tan said the partners planned to build critical AI infrastructure in Malaysia, where Grab began, for all of Southeast Asia, and that it would allow them to speed up the development of localised AI solutions for their communities.

As part of the arrangement, SoftBank agreed in principle to a five-year lock-up on the Grab shares it holds directly. SoftBank was one of Grab's earliest major backers. The Malaysian deals land a day before SoftBank reports results for its fiscal second quarter, which ended on 30 September.