Singapore: The Asian Development Bank (ADB) is set to back $70 billion in new energy and digital infrastructure initiatives by 2035, with the aim of connecting power grids, expanding cross-border electricity trade, and improving broadband access across Asia and the Pacific. 'Energy and digital access will define the region's future,' stated ADB President Masato Kanda, emphasizing the importance of these initiatives in building systems needed for growth, competition, and connectivity in the region.
According to Emirates News Agency, the Pan-Asia Power Grid Initiative will integrate national and subregional power systems to facilitate the cross-border flow of renewable energy. Concurrently, the Asia-Pacific Digital Highway aims to close the digital infrastructure gap, enabling the region to harness AI-driven growth. ADB plans to mobilize $50 billion by 2035 under the Pan-Asia Power Grid Initiative, working with governments, utilities, the private sector, and development partners to enhance cross-border power infrastructure and unlock renewable energy at scale.
By 2035, the ADB initiative seeks to integrate about 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%. The bank anticipates financing approximately half of the $50 billion initiative from its own resources, with the remainder raised through cofinancing, including contributions from the private sector. Additionally, up to $10 million in technical assistance will be provided to align regulations, adopt common technical standards, and conduct feasibility studies for major projects.
The Asia-Pacific Digital Highway will mobilize $20 billion by 2035 to finance digital corridors, data infrastructure, and AI-ready economies. Investments will focus on connected infrastructure, such as terrestrial and subsea fiber networks, satellite links, and regional data centers. ADB will also provide policy and regulatory support on cybersecurity risk management and invest in skills programs to enhance digital and AI readiness.
By 2035, the digital 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. The initiative is expected 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 own resources, with $5 billion raised through cofinancing, including from the private sector. A Center for AI Innovation and Development will be established in Seoul to support the initiative, backed by a $20 million contribution from the Government of the Republic of Korea, promoting responsible and inclusive AI adoption and training approximately 3 million people in digital and AI-related skills by 2035.