ADB targets regional power, digital infrastructure

The Asian Development Bank (ADB) has announced plans to support US$70 billion in new energy and digital infrastructure initiatives by 2035. The goal is to strengthen power grid connectivity, expand cross-border electricity trade, and enhance broadband access throughout Asia and the Pacific.

"Energy and digital access will define the region's future," said ADB President Masato Kanda.

He added: "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 and expand opportunity. This will 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, enabling renewable energy—such as solar, wind, and hydroelectric power—to flow seamlessly across borders.

The Asia-Pacific Digital Highway focuses on closing digital infrastructure gaps to foster AI-driven growth in the region.

Under the Pan-Asia Power Grid Initiative, ADB will collaborate with governments, utilities, the private sector, and development partners. The goal is to mobilise US$50 billion by 2035 for cross-border power infrastructure and unlock renewable energy at scale.

The initiative will focus on transmission and grid integration, including building cross-border lines and substations, developing storage, and digitalising grids.

ADB will also support power generation linked to electricity trade, including developing renewable energy export projects, establishing regional renewable energy hubs, and constructing hybrid generation–storage facilities.

By 2035, ADB aims to integrate around 20 gigawatts of renewable energy across borders and connect 22,000 circuit-kilometres of transmission lines. The plan will improve energy access for 200 million people, create 840,000 jobs, and reduce regional power sector emissions by 15 per cent.

ADB expects to finance about half of the US$50 billion initiative from its own resources. It will mobilise the remainder through co-financing, including private sector contributions.

Up to US$10 million in technical assistance will support efforts to harmonise regulations and adopt common technical standards. It will also help prepare feasibility studies and advance other work required for major projects.

The Pan-Asia Power Grid Initiative marks a shift to a regional approach for power trade, building on previous subregional cooperation.

It builds on existing subregional cooperation initiatives. These include the South Asia Subregional Economic Cooperation programme, the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation's grid interconnection planning, the ASEAN Power Grid, and the Central Asia Regional Economic Cooperation Energy Strategy 2030.

The Asia-Pacific Digital Highway will mobilise US$20 billion by 2035. The funds will finance digital corridors, data infrastructure, and AI-ready economies.

Investments will focus on connected infrastructure. This includes terrestrial and subsea fibre networks, satellite links, and regional data centres.

ADB will also provide policy and regulatory support, such as cybersecurity risk management. It will invest in skills programmes to strengthen digital and AI readiness.

By 2035, the initiative aims to deliver first-time broadband access to 200 million people. It will also provide faster, more reliable digital connectivity to another 450 million people across the region.

It is expected to reduce connectivity costs in remote and landlocked areas by about 40 per cent. The initiative will also help create four million jobs.