Seoul: The Asian Development Bank (ADB) has announced a significant investment of $70 billion in energy and digital infrastructure projects across Asia and the Pacific by 2035. This initiative aims to enhance connectivity through power grids and expand cross-border electricity trade, while also improving broadband access throughout the region.
According to United News of Bangladesh, the Pan-Asia Power Grid Initiative will play a crucial role in linking national and subregional power systems to facilitate the cross-border flow of renewable energy. Additionally, the Asia-Pacific Digital Highway is designed to bridge the digital infrastructure gap, fostering AI-driven growth across the region.
Under the Pan-Asia Power Grid Initiative, ADB plans to collaborate with governments, utilities, the private sector, and development partners to mobilize $50 billion by 2035. This funding will support the development of cross-border power infrastructure to enable the large-scale deployment of renewable energy, as outlined in a press release.
The initiative focuses on transmission and grid integration, including cross-border lines, substations, storage, and grid digitalization. It also aims to support power generation linked to electricity trade through renewable energy export projects, regional renewable hubs, and hybrid generation-storage facilities.
By 2035, ADB’s goal is to integrate approximately 20 gigawatts of renewable energy across borders, connect 22,000 circuit-kilometers of transmission lines, improve energy access for 200 million people, create 840,000 jobs, and reduce regional power sector emissions by 15%.
ADB anticipates financing about half of the $50 billion initiative through its resources, with the remainder raised through cofinancing, including private sector contributions. Up to $10 million in technical assistance will be provided to align regulations, adopt common technical standards, and prepare feasibility studies.
This initiative signifies a transition from bilateral energy links to a regional approach, building on existing subregional cooperation programs such as the South Asia Subregional Economic Cooperation program and the ASEAN Power Grid.
Meanwhile, the Asia-Pacific Digital Highway aims to mobilize $20 billion by 2035 to fund digital corridors, data infrastructure, and AI-ready economies. Investments will target connected infrastructure, including terrestrial and subsea fiber networks, satellite links, and regional data centers.
ADB will also provide policy and regulatory support, including cybersecurity risk management, and invest in skills programs to enhance digital and AI readiness. By 2035, the initiative aims to provide first-time broadband access to 200 million people and improve digital connectivity for an additional 450 million people.
It is projected to reduce connectivity costs in remote and landlocked areas by about 40% and create 4 million jobs. ADB plans to finance $15 billion of the $20 billion initiative from its resources and secure $5 billion through cofinancing, including private sector participation.
To support this initiative, the Center for AI Innovation and Development will be established in Seoul, backed by a $20 million contribution from the Government of the Republic of Korea. The center will promote responsible and inclusive AI adoption and help train about 3 million people in digital and AI-related skills by 2035.
ADB President Masato Kanda emphasized the importance of energy and digital access in shaping the region’s future. “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,” he stated.