SoftBank Group, Grab and PETROS Target at Least 5 GW of Malaysia AI Capacity

SoftBank Group, Grab and Petroleum Sarawak Berhad (PETROS) signed joint development agreements for AI projects in Malaysia, proposing $1.85 billion in initial capital and a long-term capacity target of at least 5 gigawatts.

The Nov. 9 agreements cover separate projects in Sarawak and Peninsular Malaysia. The Sarawak plan accounts for $1 billion, including $800 million proposed by SoftBank and $100 million each from Grab and PETROS. Grab proposes $650 million for the $850 million peninsular project, with SoftBank proposing the remaining $200 million.

SoftBank will lead the Sarawak project, while Grab will lead the peninsular effort. The agreements carry binding development and funding obligations, but investment terms still require final agreements and other conditions to be met.

The capacity target is a long-term goal, not infrastructure already operating. The companies announced no completion date. The Sarawak agreement follows an Oct. 8 framework deal among the three companies to explore AI and digital infrastructure there.

The partners are seeking additional investors and large cloud customers. They plan to provide funding in stages as development advances and customer-contract milestones are met.