Key Takeaways
- • SoftBank Group and Grab Holdings plan an initial combined $1.85 billion investment to develop AI infrastructure across Malaysia, with a long-term target of at least five gigawatts of AI computing capacity.
- • The initial capital comprises $1 billion from SoftBank, $750 million from Grab and $100 million from Petroleum Sarawak Berhad (PETROS), deployed in stages subject to development milestones and customer contracts.
- • The Sarawak project receives $1 billion initially (SoftBank $800 million, Grab $100 million, PETROS $100 million), while the Peninsular Malaysia project receives $850 million (Grab $650 million, SoftBank $200 million).
- • Grab can increase its stake in the Sarawak project, which would dilute SoftBank's holding, though SoftBank would remain majority shareholder.
- • SoftBank has agreed in principle to a five-year lock-up on Grab shares held directly by a SoftBank entity, subject to agreed terms and customary exceptions.
Summary
SoftBank Group and Grab Holdings have announced plans to invest an initial combined $1.85 billion to develop artificial intelligence infrastructure across Malaysia. According to the announcement, the companies, together 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.
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 $1 billion, with SoftBank contributing $800 million, Grab $100 million and PETROS the remaining $100 million. Grab holds 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 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 also plan to seek additional investors and hyperscaler customers to support expansion, with the facilities intended to serve governments, multinational companies and small businesses.
SoftBank Group chairman and CEO Masayoshi Son said AI infrastructure will power the next wave of growth and that Malaysia has the talent and ambition to help lead it. Grab co-founder and chief executive Anthony Tan is expected to oversee both projects, appointing dedicated management teams for day-to-day operations while continuing to lead the ride-hailing and delivery group. 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 in engineering, design and technical fields. The parties will also explore opportunities in advanced manufacturing.
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 $1 billion, with SoftBank contributing $800 million, Grab $100 million and PETROS the remaining $100 million. Grab holds 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 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 also plan to seek additional investors and hyperscaler customers to support expansion, with the facilities intended to serve governments, multinational companies and small businesses.
SoftBank Group chairman and CEO Masayoshi Son said AI infrastructure will power the next wave of growth and that Malaysia has the talent and ambition to help lead it. Grab co-founder and chief executive Anthony Tan is expected to oversee both projects, appointing dedicated management teams for day-to-day operations while continuing to lead the ride-hailing and delivery group. 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 in engineering, design and technical fields. The parties will also explore opportunities in advanced manufacturing.
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