ADB plans $70bn in energy and digital initiatives to boost regional connectivity by 2035

The Asian Development Bank (ADB) has announced plans to support new regional initiatives in the energy and digital infrastructure sectors with a combined value of $70bn through 2035, focusing on cross-border connectivity, renewable energy integration, and digital network expansion across Asia and the Pacific.

According to ADB President Masato Kanda, the initiatives are designed to strengthen regional systems by improving access to energy and digital technologies, which are expected to play a central role in economic development and integration.

One of the core components is the Pan-Asia Power Grid Initiative, which aims to mobilize $50bn for the development of cross-border electricity infrastructure. The initiative focuses on connecting national and subregional power systems to enable the flow of renewable energy across borders. Planned investments include transmission lines, substations, energy storage systems, and digitalization of power grids, as well as projects supporting renewable energy production for export and the creation of regional energy hubs.

By 2035, the initiative is expected to integrate approximately 20 gigawatts of renewable energy capacity across borders and develop around 22,000 kilometers of transmission infrastructure. It also aims to expand electricity access to about 200mn people, while supporting job creation and reducing emissions in the energy sector.

ADB plans to finance around half of the total funding for the power grid initiative from its own resources, with the remainder expected to come from co-financing, including private sector participation. Technical assistance funding will be allocated to support regulatory harmonization, standard-setting, and project preparation.

The initiative builds on existing regional cooperation frameworks, including the South Asia Subregional Economic Cooperation Programme, the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation, the ASEAN Single Energy System Project, and the Central Asia Regional Economic Cooperation Programme’s Energy Strategy 2030.

The second major component is the Asia-Pacific Digital Highway Initiative, which aims to mobilize $20bn by 2035 to expand digital infrastructure and support the development of AI-ready economies. Investments will focus on building interconnected networks, including fiber-optic cables, satellite systems, and regional data centers.

The initiative also includes support for policy development, cybersecurity frameworks, and workforce training programs to enhance digital capabilities. By 2035, it is expected to provide primary broadband access to around 200mn people and improve connectivity for an additional 450mn users, while reducing costs in remote and landlocked areas.

ADB plans to allocate $15bn from its own resources for the digital initiative, with additional funding to be secured through co-financing arrangements. As part of the program, an AI Innovation and Development Center will be established in Seoul with support from the Government of the Republic of Korea. The center will focus on promoting responsible AI adoption and developing digital skills, with a target of training millions of individuals by 2035.