Japan's SoftBank Group is pursuing a plan to invest $50 billion, or about 66 trillion won, in artificial intelligence, data centers and other advanced technology sectors in Malaysia. The move is seen as an attempt by SoftBank, which has concentrated its AI infrastructure spending in the United States and Europe, to expand into Southeast Asia.
Malaysian Prime Minister Anwar Ibrahim said he recently held a video conference with SoftBank Chairman Masayoshi Son to discuss the investment plan, Bloomberg reported on the 26th.
"SoftBank plans to invest a total of $50 billion in advanced industries such as AI and data centers," Anwar said, adding that Son had selected Kuching, the capital of Sarawak state on the island of Borneo, and areas on the Malay Peninsula as the main target regions for the investment.
Nikkei Asia of Japan and CNBC of the United States also reported on the investment plan. SoftBank did not respond to requests for comment, and no specific investment timeline or project-by-project spending figures have been disclosed.
Earlier this month, SoftBank began cooperating with Malaysian companies and institutions on building AI infrastructure. It signed a framework agreement on AI infrastructure development involving Grab, Southeast Asia's leading ride-hailing and delivery platform, and institutions in Sarawak state. With Anwar now citing the investment size and target regions directly, the earlier cooperation framework could develop into a more concrete investment plan.
SoftBank's push into Malaysia aligns with its strategy of nurturing AI infrastructure as a future growth engine for the group.
The company is pursuing Stargate, a massive AI infrastructure project in the United States, and is also investing in large-scale AI data centers in France. If the Malaysian project moves ahead in earnest, SoftBank's AI infrastructure footprint will stretch from North America and Europe into Southeast Asia.
The $50 billion figure is substantial even by the standards of Southeast Asia's data center market. If the plan materializes, it is expected to help Malaysia, where global big tech firms have been expanding data center investments, emerge as a regional hub for AI infrastructure.
Some observers say the project could open new business opportunities for South Korean industry. Building large AI data centers requires high-performance memory chips for servers as well as transformers, power distribution equipment and other gear to supply electricity. As the investment plan takes shape, export and order opportunities could widen for Korean semiconductor and power equipment makers.
Foreign media noted that SoftBank has not officially confirmed the size of the investment or announced a specific funding schedule, and said key questions now include whether cooperation with Grab and Sarawak institutions will translate into actual business contracts and how large the AI data centers in Kuching and on the Malay Peninsula will be.