SoftBank-led Sarawak AI project hinges on land, power availability

SoftBank Group Corp, Grab Holdings Ltd and Petroleum Sarawak Bhd have flagged land and power availability as key uncertainties for a proposed AI and digital infrastructure platform in Sarawak. The project's risks include securing suitable land, competitively priced and reliable power, connectivity a

PETALING JAYA (Oct 26): Land and power availability are among the uncertainties affecting a proposed artificial intelligence (AI) and digital infrastructure platform in Sarawak, according to SoftBank Group Corp and its partners.

SoftBank, Grab Holdings Ltd and Petroleum Sarawak Bhd (Petros) identified the possibility that suitable land, competitively priced and reliable power, connectivity or contracted customer demand might not be secured among the project's risks. Their Oct 8 joint announcement did not disclose a project site, land area, development scale or investment amount.

Separately, Prime Minister Datuk Seri Anwar Ibrahim said SoftBank's Masayoshi Son had identified Kuching in Sarawak and locations in Peninsular Malaysia for proposed technology investments worth US$50 billion (RM204.3 billion), Bloomberg reported. The proposed investments would cover AI, new technology and data centres, Anwar said in a speech in Melaka on Saturday (Oct 24), following a videoconference with Son earlier that week.

SoftBank representatives did not immediately respond to Bloomberg's request for comment outside normal business hours. The report did not specify individual project sites, an implementation timetable or how the US$50 billion would be allocated. The companies' Oct 8 announcement did not link the Sarawak initiative to that investment figure.

Under their framework agreement, the partners intend to develop a roadmap for the platform's phased development. Petros' proposed contribution includes energy supply solutions, enabling infrastructure and local engagement. SoftBank would contribute expertise in AI infrastructure, advanced computing and semiconductors, while Grab would bring its regional digital ecosystem, applied AI capabilities and customer and partner networks.

The collaboration would also explore AI computing and services, advanced technologies, robotics and workforce development. The framework agreement does not oblige the companies to enter into definitive agreements or implement the project. Financing, approvals and technical and commercial feasibility are also among the factors that could affect whether it proceeds.