, Grab and PETROS have signed a joint development agreement to build AI infrastructure in [Malaysia](https://baxtel.com/regions/malays...](https://cdn.baxtel.com/data-center/softbank-grab-and-petros-sign-1-85b-jda-for-5gw-malaysia-buildout/logo/large_softbank-grab-and-petros-sign-1-85b-jda-for-5gw-malaysia-buildout-featured.jpg){kind=logo}
SoftBank Group, Grab and PETROS have signed a joint development agreement to build AI infrastructure in Malaysia, advancing the October framework agreement between the three companies. The agreement carries US$1.85 billion in combined seed capital and a target of five gigawatts or more of AI compute capacity across Sarawak and Peninsular Malaysia, according to SoftBank 
Featured: Wide editorial headline image illustrating the $1.85 billion joint seed capital commitment for Malaysian AI data center developments.Group's announcement.
The Sarawak project is led and majority-owned by SoftBank Group, which commits US$800 million of a US$1 billion first phase. Grab and PETROS each contribute US$100 million. Grab holds an option to raise its stake, which would reduce SoftBank Group's holding while leaving it the majority shareholder.
Grab leads a separate Peninsular Malaysia project as founding shareholder, with US$850 million in proposed seed capital split as US$650 million from Grab and US$200 million from SoftBank Group, Grab's announcement says. The joint development agreement moves the partnership into its joint development phase. Funding releases in stages as the projects reach development and customer contract milestones and closing conditions.
PETROS, Sarawak's state-owned energy company, contributes through the Sarawak Gas Roadmap and its role as master developer of the Kuching Low-Carbon Hub. SoftBank Group says the facilities will run in line with Malaysia's renewable energy use guidelines and use high-efficiency designs to reduce water use and grid reliance. Malaysia's government approved a rule in October requiring data centers to source at least 30 percent of their power from renewable energy.
"We are proud to work with Sarawak to advance AI for the benefit of the region and its people," said Masayoshi Son, chairman and CEO of SoftBank Group. "Grab's mission is and always has been the technological advancement and economic development of Southeast Asia," said Anthony Tan, co-founder, chairman and CEO of Grab.
The three companies will seek additional investors and hyperscaler customers. Google has separately committed $15 billion to Malaysian data center campuses, Baxtel reported on November 4.
Baxtel tracks 200 data center facilities in Malaysia, operated by 69 providers, with Sarawak accounting for six. The largest in the country is YTL Data Centers' JDC1 at 72 MW.
The joint venture entities and each party's investment terms remain subject to definitive agreements and specified conditions.
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