ADB to invest $70 billion in pan-Asia power grid and digital highway to boost connectivity by 2035

The Asian Development Bank (ADB) on Sunday said it will back USD 70 billion in new energy and digital infrastructure initiatives across Asia and the Pacific by 2035, aimed at strengthening cross-border connectivity and expanding access to electricity and broadband.

Energy and digital access will play a defining role in shaping the region's future, adding that the initiatives seek to link power grids and digital networks to lower costs and expand opportunities, ADB President Masato Kanda said while speaking to the media at the 59th annual meeting of the bank here.

The bank announced two major programmes -- the Pan-Asia Power Grid Initiative and the Asia-Pacific Digital Highway -- with proposed investments of USD 50 billion and USD 20 billion, respectively.

"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 said.

Under the Pan-Asia Power Grid Initiative, ADB will work with governments and private stakeholders to develop cross-border electricity infrastructure, including transmission lines, substations, storage systems and grid modernisation. The programme aims to integrate around 20 gigawatts of renewable energy, build 22,000 circuit-km of transmission lines, and improve electricity access for 200 million people by 2035.

The initiative is also expected to create about 840,000 jobs and reduce regional power sector emissions by 15 per cent, ADB said, adding that it will finance nearly half of the programme from its own resources while mobilising the rest through co-financing.

ADB said the plan marks a shift towards a more integrated regional approach to energy trade, building on existing cooperation frameworks such as the ASEAN power grid and the Central Asia Regional Economic Cooperation energy strategy.

The Asia-Pacific Digital Highway initiative will focus on expanding digital connectivity through investments in fibre networks, satellite links and data centres, alongside policy support and skills development.

The programme aims to provide first-time broadband access to 200 million people and improve connectivity for another 450 million by 2035, while reducing costs in remote areas by around 40 per cent and generating an estimated 4 million jobs.

ADB said it expects to contribute USD 15 billion to the digital initiative and raise the remaining USD 5 billion through partnerships, including with the private sector.

As part of the effort, a new centre for AI innovation and development will be set up in Seoul with support from the South Korean government to promote responsible adoption of artificial intelligence and train about 3 million people in digital and AI-related skills.

Expressing his views on the Middle East crisis, Kanda said, "Our region is the one of the most severely impacted by the conflict. The first blow landed in energy, but it did not stop there, with higher prices quickly spilling into fuel, freight, food, and fertiliser.

"What we are seeing is not only a security crisis, but a stress test of the global order. It is a reminder that countries remain highly vulnerable to shocks originating in a few strategic corridors. It is exposing the cost of overreliance, and accelerating the shift from pure efficiency toward resilience," he said.

ADB remains a steadfast partner during these challenging times, he said, adding that the bank announced a financial support package to help developing member countries manage the economic fallout from the Middle East conflict on March 23.

Founded in 1966, ADB is a multilateral development bank owned by 69 members, including 50 from the Asia-Pacific region, and focuses on promoting sustainable and inclusive growth.