KUCHING: Sarawak is set to receive an initial US$1 billion (approximately RM4.07 billion) investment to develop artificial intelligence (AI) infrastructure under a partnership involving SoftBank Group, Grab Holdings Limited and Petroleum Sarawak Berhad (PETROS).
The three parties announced the signing of a Joint Development Agreement (JDA) on November 9, marking the next phase of their collaboration to advance the development of AI infrastructure in Sarawak.
The agreement builds on the Framework Agreement signed by the three parties in Kuching on Oct 8 and will see them combine their respective expertise in AI technology, digital services, energy and infrastructure development.
Under the proposed investment, SoftBank Group will contribute US$800 million, while Grab and PETROS will each contribute US$100 million in initial combined seed capital.
The investment will be deployed in stages, subject to the achievement of key development and customer contract milestones, as well as the fulfilment of necessary closing conditions.
The project will be led and majority-owned by SoftBank Group, with Grab and PETROS serving as strategic partners, and has a long-term target of developing five gigawatts of AI computing capacity.
The parties will also explore opportunities across the wider AI value chain, including AI computing and services, advanced technologies, robotics, local workforce development and community development.
SoftBank Group chairman and chief executive officer Masayoshi Son said the collaboration aimed to advance AI development for the benefit of the region and its people.
“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,” he said.
Grab co-founder, chairman and chief executive officer Datuk Anthony Tan said Sarawak’s focus on sustainable energy use and long-term vision made it a suitable location for AI infrastructure serving Southeast Asia.
He said Grab would contribute its experience in developing AI tools for millions of users, merchant-partners and driver-partners to help ensure the technology generated high-value employment and opportunities for Sarawakians.
PETROS Group chief executive officer Datuk Janin Girie said the initiative is aimed at preparing Sarawak for its next phase of economic transformation beyond the oil and gas sector.
He said the state aspired to build a high-income economy in which technology and innovation would create new industries, opportunities and high-value jobs.
“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,” he said.
PETROS will contribute its experience in energy and infrastructure development, particularly through its role in advancing the Sarawak Gas Roadmap and as Master Developer of the Kuching Low-Carbon Hub.
Through the Sarawak Gas Roadmap, PETROS is advancing critical gas infrastructure to strengthen the state’s energy security and support industrial expansion.
Meanwhile, the Kuching Low-Carbon Hub is being developed as an integrated low-carbon industrial ecosystem encompassing upstream development, carbon capture solutions, liquefied natural gas-to-power, downstream processing, industrial parks, gas terminals and deep-sea port infrastructure.
The parties said Sarawak’s energy resources, established power generation capacity and growing digital economy ambitions provided a strong foundation for large-scale AI infrastructure development.
The investment forms part of a multi-year plan, with the parties also seeking additional investors and hyperscaler customers to support the project’s development and long-term expansion.
Once fully operational, the facilities are expected to be among the largest AI infrastructure developments of their kind in Asia, providing governments, multinational corporations and small businesses with access to advanced computing capabilities.
The project will be developed in collaboration with the Federal Government and Sarawak Government, supporting Malaysia’s ambition to become an inclusive and sustainable AI nation under the National AI Action Plan 2026–2030, as well as Sarawak’s Post COVID-19 Development Strategy 2030.
