SoftBank plans $50 billion investment in Malaysia’s AI and data centre sector, Anwar says

The proposed investment would support Malaysia’s ambition to become an AI nation by 2030, as major technology companies expand their digital infrastructure in the country.

1 min read
Softbank CEO Masayoshi Son

SoftBank Group plans to invest $50 billion in Malaysia, with funding expected to focus on artificial intelligence, emerging technologies and data centres, Prime Minister Anwar Ibrahim said, according to a Bloomberg report.

Anwar said on Saturday that SoftBank founder Masayoshi Son had identified potential locations in Kuching, in the state of Sarawak, and in peninsular Malaysia for the planned investments. The announcement followed a video conference between the two earlier in the week, the report said.

The proposed investment comes as Malaysia seeks to establish itself as an “AI nation” by 2030. The government launched a national artificial intelligence action plan earlier this year to strengthen the country’s AI capabilities and infrastructure, as it seeks to attract investment in technology and digital services.

SoftBank has already taken steps towards developing AI and digital infrastructure in Sarawak. Earlier this month, the Japanese technology investment group signed a framework agreement with Singapore-based Grab and Malaysia’s Petroleum Sarawak Berhad to explore potential development projects in the state.

The agreement covers areas including AI computing services and advanced technologies. It provides a framework for exploring opportunities rather than confirming the full scope or value of any resulting projects.

The proposed $50 billion investment would add to a growing flow of commitments from major international technology companies seeking to develop data centres, cloud computing capacity and AI infrastructure in Malaysia.

Google announced a $2 billion investment in 2024 to build its first data centre and cloud region in the country. Amazon Web Services has said it plans to invest $6.2 billion in Malaysia through 2038, while Microsoft announced a $2.2 billion investment in cloud and AI infrastructure and other digital initiatives in May 2024.

The scale of the investments reflects Malaysia’s expanding role as a destination for data centre development. According to the Malaysian Investment Development Authority, the country recorded 385.7 billion ringgit, equivalent to $94 billion, in data centre-related investments between 2021 and the first half of 2026.

The authority has also identified the data centre sector as an area for further development, as Malaysia seeks to move beyond attracting investment towards building greater value for domestic businesses and the wider economy.

For SoftBank, the proposed Malaysian investment would centre on AI, new technologies and data centre facilities, according to Anwar’s remarks cited by Bloomberg. The locations identified by Son include Kuching and areas of peninsular Malaysia, although further details of the proposed projects were not provided in the report.

SoftBank did not immediately respond to CNBC’s request for comment on the planned investment.

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