SoftBank's Sarawak AI Pact Lands Alongside a Ransomware Outage at Its Cloud Unit
Published on 10/09/2026 at 00:01 | Editorial boerse-global.de
SoftBank Group is pressing ahead with an AI infrastructure play in Southeast Asia even as a cyberattack at its own cloud subsidiary knocks hundreds of Japanese customers offline. The dual developments — one strategic, one operational — frame a difficult stretch for the Japanese technology conglomerate.
The Tokyo-listed group has signed a framework agreement with ride-hailing and delivery platform Grab and Malaysian energy firm Petroleum Sarawak to explore building an artificial intelligence and digital infrastructure platform in the state of Sarawak. The deal was inked by SoftBank CEO Masayoshi Son, Grab co-founder Anthony Tan and Petros CEO Janin Girie.
Under the arrangement, the three parties will draw up a phased development roadmap and study possibilities spanning AI computing power, specialized services, robotics and advanced technologies. The initiative is also intended to bolster local workforce and community development. Responsibilities are split along clear lines: SoftBank contributes expertise in semiconductors, computing capacity and physical AI; Grab brings its Southeast Asian digital ecosystem; Petroleum Sarawak is to underpin energy supply and basic infrastructure.
No financial commitments are attached at this stage. The agreement does not obligate the parties to proceed, and neither investment sums nor timelines have been disclosed. The project is designed to support Sarawak's ambition of attaining high-income status by 2030, while complementing Malaysia's national digital agenda and the JENDELA infrastructure program.
Cloud Outage Hits Hundreds of Clients
The Sarawak exploration sits alongside a more immediate problem. A ransomware attack struck SoftBank's cloud subsidiary IDC Frontier on Wednesday, crippling parts of its IT infrastructure. In total, 495 corporate customers and municipal governments reported system disruptions. Among them, logistics company Nissui saw operations halted at 17 locations across Japan.
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Government websites in Ibaraki Prefecture were also temporarily unreachable. Authorities are investigating possible data leaks, and a full restoration of systems was considered unlikely during the day. The incident has thrown a spotlight on weaknesses in the emergency and backup arrangements of the affected administrations.
Market Pressure Compounds the Strain
The operational setback collided with a subdued mood across Asian trading floors. Profit-taking after earlier gains, higher oil prices and lingering interest-rate concerns pushed leading indices into the red. In Tokyo, SoftBank ranked among the heaviest drags on the Nikkei.
Adding to investor caution, large-scale debt-financing plans across the sector are making technology stocks a harder sell. Shareholders are scrutinizing how quickly the enormous investments in data centers and semiconductors will actually pay off.
SoftBank's stock fell 4.1% on Thursday to EUR 34.01. The Sarawak announcement did little to lift the shares, which were down 8.6% at EUR 32.40 in a separate reading.
A Broader AI Spending Spree
For SoftBank, the Sarawak feasibility study slots into a string of large-scale data center and AI ventures. The group is involved in the Stargate project, advanced jointly with OpenAI, Oracle and MGX, for which partners have so far pledged roughly USD 38 billion in equity.
Financing that global buildout demands substantial resources. SoftBank carries about USD 140 billion in debt on its books and placed bonds worth USD 11.1 billion in September. Exploring new locations such as Sarawak underscores the group's growth ambitions, yet the existing liabilities also call for discipline in how capital is deployed.
Separately, SoftBank's leadership sought direct engagement with Indonesian policymakers. Discussions covered the expansion of the digital economy and energy supply as pillars of industrialization. No firm commitments on specific investment sums were reached.
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