SAMARKAND, UZBEKISTAN (3 May 2026) — The Asian Development Bank (ADB) has announced plans to invest $70 billion in new energy and digital infrastructure projects by 2035. This initiative aims to enhance power grid connectivity, promote cross-border electricity trading, and improve broadband access throughout Asia and the Pacific region.
According to ADB President Masato Kanda, “The future of our region hinges on energy and digital access. These initiatives are essential for developing the necessary infrastructure for growth, competitiveness, and connectivity in Asia and the Pacific. By establishing interlinked power grids and digital networks across borders, we can reduce costs, create opportunities, and provide reliable energy and internet access to hundreds of millions.”
The Pan-Asia Power Grid Initiative is designed to interconnect national and regional power systems, facilitating the cross-border flow of renewable energy. Meanwhile, the Asia-Pacific Digital Highway aims to bridge the digital infrastructure divide, allowing the region to maximize the benefits of AI-driven economic growth.
As part of the Pan-Asia Power Grid Initiative, ADB will collaborate with governments, utility companies, the private sector, and development organizations to generate $50 billion by 2035 for cross-border energy infrastructure, enabling large-scale renewable energy deployment. This initiative will concentrate on enhancing transmission and grid integration, which includes the development of cross-border transmission lines, substations, energy storage solutions, and the digitalization of grid systems. It will also back power generation projects linked to electricity trading, such as initiatives for renewable energy exports, regional renewable hubs, and hybrid generation-storage systems.
By 2035, ADB aims to facilitate the integration of approximately 20 gigawatts of renewable energy across borders, establish 22,000 circuit-kilometers of transmission lines, enhance energy access for 200 million individuals, create 840,000 jobs, and achieve a 15% reduction in emissions from the regional power sector.
ADB plans to fund around half of the $50 billion initiative using its own resources, with the remaining amount sourced through cofinancing, which may include contributions from the private sector. Additionally, up to $10 million will be allocated for technical assistance to align regulations, establish common technical standards, conduct feasibility studies, and advance other necessary preparations for significant projects.
This initiative represents a transition from isolated national energy connections to a coordinated regional power trading framework, building on existing subregional cooperation efforts. These include programs like the South Asia Subregional Economic Cooperation, the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation, the ASEAN Power Grid, and the Central Asia Regional Economic Cooperation Energy Strategy 2030.
The Asia-Pacific Digital Highway aims to secure $20 billion by 2035 to develop digital corridors, data infrastructure, and economies equipped for AI. Investments will prioritize connected infrastructures such as terrestrial and undersea fiber networks, satellite communications, and regional data centers. ADB will also provide policy and regulatory guidance on cybersecurity and invest in training programs to enhance digital and AI readiness.
By 2035, this initiative expects to offer first-time broadband access to 200 million people and improve faster, more reliable digital connections for an additional 450 million across the region. It is anticipated to reduce connectivity costs in remote and landlocked areas by approximately 40% and generate 4 million new jobs.
ADB aims to finance $15 billion of the $20 billion digital initiative from its own resources, with the remaining $5 billion raised through cofinancing, including private sector involvement. Additionally, a Center for AI Innovation and Development will be established in Seoul, supported by a $20 million investment from the Government of the Republic of Korea. This center will focus on promoting responsible AI practices and training around 3 million individuals in digital and AI-related skills by 2035.
