KUALA LUMPUR (Nov 9): Petroleum Sarawak Bhd (PETROS), SoftBank Group Corp and Grab Holdings Limited have entered into a Joint Development Agreement (JDA) for US$1 billion in initial combined seed capital to develop AI infrastructure in Sarawak.
Building on the framework agreement signed in Kuching, Malaysia, on Oct 8, 2026, the JDA marks the next phase of the partnership to advance plans to develop AI infrastructure in Sarawak.
The proposed initial investment of US$1 billion, comprises of US$800 million from SoftBank Group, US$100 million from Grab and US$100 million from PETROS.
The proposed investment will be deployed in stages, subject to projects achieving key development and customer contract milestones, and the necessary closing conditions.
The partnership combines SoftBank Group's global AI and technology capabilities, Grab's digital and AI expertise, and PETROS' local energy and infrastructure development experience.
The collaboration aims to build towards a long-term target of five gigawatts of AI compute capacity and will also explore opportunities across the wider AI value chain, including AI compute and services, advanced technologies, robotics, local workforce and community development.
"The investment forms part of a multi-year plan to develop AI compute capacity in Sarawak, and the parties will also seek additional investors and hyperscaler customers to support the project's development and long-term expansion," according to a joint statement on Monday.
Masayoshi Son, chairman and CEO of SoftBank Group Corp., said : "We are proud to work with Sarawak to advance AI for the benefit of the region and its people. Together with Grab and PETROS, we aim to create lasting opportunities in Sarawak and support the development of technology-driven economic activity across Malaysia and the wider region."
Datuk Anthony Tan, co-founder, chairman and chief executive officer of Grab, said Sarawak's focus on sustainable energy use and long-term vision make it a natural home for AI infrastructure that can serve all of Southeast Asia.
"Grab is proud to support SoftBank Group and PETROS in building it, and to bring our experience developing AI tools for millions of users, merchant- and driver-partners to help ensure these capabilities create high-value jobs and opportunities for Sarawakians."
Datuk Janin Girie, PETROS group chief executive officer, said this is about preparing Sarawak for its next phase of economic transformation beyond oil and gas and building a high-income economy.
"By bringing advanced AI and computing capabilities closer to our local businesses, industries and talents, we can strengthen their capabilities, improve competitiveness and enable greater participation in the digital economy."
Once fully operational, the facilities are expected to be among the largest AI infrastructure of their kind in Asia, and the project will be developed in close collaboration with Malaysia's Federal Government and the Sarawak Government, aligning with the National AI Action Plan 2026–2030 and Sarawak's Post Covid-19 Development Strategy 2030.
Through the Sarawak Gas Roadmap, PETROS is advancing critical gas infrastructure to strengthen Sarawak's energy security and support its industrial expansion.
As the master developer of the Kuching Low-Carbon Hub, PETROS is also building an integrated low-carbon industrial ecosystem that brings together upstream development, carbon capture solutions, LNG-to-Power, downstream processing, industrial parks, gas terminals and deep-sea port infrastructure.
Sarawak's abundant energy resources, established power generation capacity and growing digital economy ambitions provide a strong foundation for the development of large-scale AI infrastructure.
These investments will support Malaysia's ambition to become a regional AI hub, while creating opportunities for Sarawak to diversify its economy and move towards higher-value industries.