SoftBank plans $50 billion AI and data center investment in Malaysia: what it means
Malaysian Prime Minister Anwar Ibrahim says SoftBank's Masayoshi Son plans to invest $50 billion in AI, new technology and data centers in Malaysia. Here's what we know and why Malaysia is winning these deals.
Japanese tech investor SoftBank plans to invest around $50 billion in Malaysia, according to Malaysian Prime Minister Anwar Ibrahim. The money would go into artificial intelligence, new technology and data centers.
If it goes ahead, it would be one of the largest foreign technology investments in Southeast Asia’s history.
What we know
- Amount: about $50 billion, according to Anwar (reported by Bloomberg and Nikkei Asia on October 26, 2026).
- Sectors: “AI, new technology and data centers,” Anwar said.
- Locations: Anwar said SoftBank founder Masayoshi Son chose sites in Sarawak (Kuching) on the island of Borneo and in Peninsular Malaysia.
- How it came about: Anwar said he discussed the plan with Son in a video call and shared the news during a speech in Melaka.
- SoftBank’s response: SoftBank had not publicly confirmed the details at the time of the reports.
Details such as the timeline, partners and exact projects haven’t been announced yet.
Why Malaysia?
Malaysia has become one of Asia’s hottest places for data centers. According to S&P Global Ratings, it could nearly triple its data center capacity by 2030. Reasons include:
- Location: it’s right next to Singapore, which has limited land and power for new data centers.
- Connectivity: strong internet cable links across the region.
- Power and water: data centers need huge amounts of both, and Malaysia has been expanding capacity.
- Government support: Malaysia wants to become an “AI nation” and has attracted big tech investment in recent years.
Sarawak is interesting because it has large hydropower resources, which can supply cleaner electricity for energy-hungry AI data centers.
AI needs three things in huge amounts: chips, electricity and space. Malaysia is betting it can offer the last two better than its neighbors.
SoftBank’s big AI spending spree
This would add to SoftBank’s other giant AI projects. According to Bloomberg, SoftBank is already working on a $500 billion data center project in Ohio in the US and a project in France that could cost up to $84 billion. Masayoshi Son has repeatedly said he believes AI will transform the world economy.
Challenges
Malaysia has also been tightening approvals for data centers because of their heavy use of power and water, and costs are rising. S&P said Malaysia is “slowing down to get ahead,” focusing on better-quality projects. Large plans like this can also change or shrink before they’re completed.
What it could mean for Malaysia and the region
- New jobs in construction, engineering and tech
- More local AI and cloud services, with faster access for Southeast Asian users
- Growth in related industries, such as power, chips and software
Frequently asked questions
How much is SoftBank investing in Malaysia?
About $50 billion, according to Prime Minister Anwar Ibrahim. SoftBank hadn’t confirmed details publicly at the time.
Where in Malaysia will SoftBank invest?
Anwar said sites were chosen in Sarawak (Kuching) and Peninsular Malaysia.
What will the money be used for?
AI, new technology and data centers.
Why are data centers moving to Malaysia?
Because of its location next to Singapore, good connectivity, growing power and water capacity, and government support.
