Japanese investment conglomerate SoftBank Group is planning to invest $50 billion in Malaysia, with proposed projects expected to focus on artificial intelligence (AI), emerging technologies and data centre infrastructure, according to a Bloomberg report citing Prime Minister Anwar Ibrahim.
Anwar disclosed the plan on Saturday, saying SoftBank founder Masayoshi Son had identified potential investment locations in Kuching, the capital of Sarawak, and in peninsular Malaysia. The development followed a video conference between the two earlier in the week, the report said.
The proposed investment could strengthen Malaysia’s position as an emerging regional technology hub, particularly as demand for AI computing capacity, cloud services and digital infrastructure continues to expand.
The initiative also aligns with the Malaysian government’s ambition to establish the country as an “AI nation” by 2030. Earlier this year, the government launched a national AI action plan aimed at strengthening the country’s technological capabilities and infrastructure.
SoftBank expands interest in Malaysian technology
SoftBank’s proposed investment comes amid growing interest in Malaysia’s technology sector and its potential to accommodate large-scale digital infrastructure projects.
Earlier this month, SoftBank signed a framework agreement with Singapore-based technology company Grab and Malaysia’s Petroleum Sarawak Berhad to explore the development of AI and digital infrastructure in Sarawak.
The proposed collaboration includes AI computing services and other advanced technologies, highlighting the state’s potential role in Malaysia’s wider digital transformation.
Kuching and other locations in Sarawak could benefit from increased investment in technology infrastructure, although details of the proposed $50 billion investment, including its implementation schedule and project breakdown, have not been disclosed in the report.
Global technology companies deepen investment
SoftBank is not the only major international technology company pursuing opportunities in Malaysia. Global technology giants have announced multibillion-dollar commitments to develop data centres, cloud computing facilities and AI infrastructure in the country.
Google announced a $2 billion investment in 2024 to establish its first data centre and cloud region in Malaysia. Amazon Web Services also announced plans to invest $6.2 billion through 2038, while Microsoft committed $2.2 billion to cloud and AI infrastructure and other digital initiatives.
These investments reflect the growing importance of Malaysia as companies expand their computing capacity to meet rising demand for cloud-based services, AI applications and digital platforms.
According to the Malaysian Investment Development Authority, the country recorded 385.7 billion ringgit, equivalent to approximately $94 billion, in data centre-related investments between 2021 and the first half of 2026.
The scale of these commitments underscores the increasing role of digital infrastructure in Malaysia’s investment landscape.
AI ambitions drive infrastructure development
Malaysia’s pursuit of AI-led growth requires substantial investment in computing facilities, data storage, connectivity and the supporting technological ecosystem.
Data centres are particularly important to the development of AI because they provide the computing power needed to train and operate advanced models, process large volumes of information and support cloud-based applications.
The proposed SoftBank investment could add to the capital flowing into these areas, potentially creating opportunities for local businesses, technology providers and skilled workers.
However, the scale and timing of the planned investment remain subject to further clarification, and the available report does not provide a detailed breakdown of the projects or confirm a formal investment schedule.
As Malaysia continues to attract international technology companies, the challenge will be to translate investment commitments into operational infrastructure, stronger domestic technological capabilities and sustainable economic benefits.
If realised, SoftBank’s proposed $50 billion investment would represent a significant addition to Malaysia’s ongoing efforts to build its AI and digital economy, reinforcing the country’s ambition to become a major technology hub in Southeast Asia.