ADB launches $70 billion push to connect Asia’s power grids and digital networks

“Energy and digital access will define the region’s future,” said the Asian Development Bank (ADB) president Masato Kanda. “These two initiatives build the systems Asia-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 mobilise $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 digitalisation. 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 around 20 gigawatts of cross-border renewable energy, connect 22,000 circuit-kilometres of transmission lines, improve energy access for 200 million people, create 840,000 jobs, and reduce regional power sector emissions by 15 per cent.

ADB plans to finance around half of the $50 billion initiative from its own resources, with the remainder expected from cofinancing sources, including the private sector. Up to $10 million in technical assistance will support regulatory alignment, common technical standards, feasibility studies, and other preparatory work for major projects.

The Pan-Asia Power Grid Initiative marks a shift from bilateral energy links to a more integrated regional power trade approach. It builds on existing subregional cooperation frameworks, including the South Asia Subregional Economic Cooperation programme, the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation grid interconnection plan, the ASEAN Power Grid, and the Central Asia Regional Economic Cooperation Energy Strategy 2030.

The Asia-Pacific Digital Highway will mobilise $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.

The ADB will also provide policy and regulatory support, including on cybersecurity risk management, and invest in skills programmes 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 $15 billion of the $20 billion initiative from its own resources and raise $5 billion through co-financing, including from the private sector. The Centre 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, the centre will encourage responsible and inclusive AI adoption and help train about 3 million people in digital and AI-related skills by 2035.

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