(Phnom Penh): The Asian Development Bank (ADB) will back USD 70 billion in new energy and digital infrastructure initiatives by 2035, aiming to connect power grids, expand cross-border electricity trade, and improve broadband access across Asia and the Pacific.
“Energy and digital access will define the region’s future,” said ADB President Masato Kanda. “These two initiatives build the systems Asia and the Pacific need to grow, compete, and connect. By linking power grids and digital networks across borders, we can lower costs, expand opportunity, and bring reliable power and digital access to hundreds of millions of people.”
The Pan-Asia Power Grid Initiative will connect national and subregional power systems so renewable energy can flow across borders, while the Asia-Pacific Digital Highway will help close the digital infrastructure gap and enable the region to benefit from AI-driven growth.
Under the Pan-Asia Power Grid Initiative, ADB will work with governments, utilities, the private sector, and development partners to mobilize USD 50 billion by 2035 for cross-border power infrastructure that can unlock renewable energy at scale.
The initiative will focus on transmission and grid integration, including cross-border lines, substations, storage, and grid digitalization. It will also support power generation linked to electricity trade, including renewable energy export projects, regional renewable hubs, and hybrid generation-storage facilities.
By 2035, ADB aims to integrate about 20 gigawatts of renewable energy across borders, connect 22,000 circuit-kilometres of transmission lines, improve energy access for 200 million people, create 840,000 jobs, and cut regional power sector emissions by 15 per cent.
ADB expects to finance about half of the USD 50 billion initiative from its own resources and raise the rest through cofinancing, including from the private sector. Up to USD 10 million in technical assistance will support efforts to align regulations, adopt common technical standards, prepare feasibility studies and advance other work needed for major projects.
The Pan-Asia Power Grid Initiative marks a shift from country-to-country energy links to a regional approach to power trade. It builds on existing subregional cooperation initiatives, including the South Asia Subregional Economic Cooperation program, the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation grid interconnection planning, the ASEAN Power Grid, and the Central Asia Regional Economic Cooperation Energy Strategy 2030.
The Asia-Pacific Digital Highway will mobilize USD 20 billion by 2035 to finance digital corridors, data infrastructure, and AI-ready economies. Investments will focus on connected infrastructure, including terrestrial and subsea fibre networks, satellite links and regional data centres. ADB will also provide policy and regulatory support, including on cybersecurity risk management, and invest in skills programs to strengthen digital and AI readiness.
By 2035, the initiative aims to provide first-time broadband access to 200 million people and faster, more reliable digital connectivity for another 450 million people across the region. It is expected to cut connectivity costs in remote and landlocked areas by about 40 per cent and help create 4 million jobs.
ADB expects to finance USD 15 billion of the USD 20 billion initiative from its own resources and raise USD 5 billion through cofinancing, including from the private sector. The Centre for AI Innovation and Development will be established in Seoul to support the initiative. Backed by a USD 20 million contribution from the Government of the Republic of Korea, the centre will promote responsible and inclusive AI adoption and help train about 3 million people in digital and AI-related skills by 2035.
ADB is a leading multilateral development bank supporting sustainable, inclusive, and resilient growth across Asia and the Pacific. Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet. Founded in 1966, ADB is owned by 69 members, 50 from the region.
=FRESH NEWS
