The Asian Development Bank has announced an ambitious plan to support $70 billion in new energy and digital infrastructure projects across Asia and the Pacific by 2035, aiming to strengthen regional connectivity, expand renewable energy trade, and accelerate digital transformation.
At the heart of this vision are two major initiatives: the Pan-Asia Power Grid Initiative and the Asia-Pacific Digital Highway. Together, they are designed to connect power systems across borders and build the digital backbone needed for future economic growth, including the expansion of artificial intelligence-driven industries.
Under the Pan-Asia Power Grid Initiative, ADB plans to mobilize $50 billion by 2035 to integrate national and subregional electricity networks. The initiative will focus on building cross-border transmission lines, substations, and energy storage systems, alongside modernizing grids through digital technologies. It will also support renewable energy projects linked to regional electricity trade, including export-oriented generation, renewable energy hubs, and hybrid systems that combine generation with storage.
The initiative is expected to significantly enhance the region’s energy landscape by integrating around 20 gigawatts of renewable energy across borders and connecting approximately 22,000 circuit-kilometers of transmission lines. It also aims to improve energy access for 200 million people, create around 840,000 jobs, and reduce emissions in the power sector by 15 percent. ADB intends to finance roughly half of the required investment, with the remainder to be mobilized through partnerships, including private sector participation. Additional technical assistance will be provided to help align regulatory frameworks, develop common standards, and prepare large-scale projects.
This approach marks a shift toward a more coordinated regional energy system, building on existing cooperation platforms such as the South Asia Subregional Economic Cooperation program, 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.
Alongside energy integration, ADB is also advancing the Asia-Pacific Digital Highway, a $20 billion initiative aimed at closing the region’s digital infrastructure gap. The program will invest in fiber-optic networks, satellite communications, and regional data centers to improve connectivity and enable economies to harness the benefits of artificial intelligence and digital technologies.
By 2035, the initiative is expected to provide first-time broadband access to 200 million people while improving connectivity for an additional 450 million people. It also aims to reduce connectivity costs in remote and landlocked areas by around 40 percent and create approximately 4 million jobs. ADB plans to contribute $15 billion toward this effort, with the remaining $5 billion coming from cofinancing sources.
To support this digital transformation, a Center for AI Innovation and Development will be established in Seoul with support from the government of Republic of Korea. The center will focus on promoting responsible and inclusive use of artificial intelligence and is expected to help train around 3 million people in digital and AI-related skills by 2035.
ADB President Masato Kanda emphasized that energy and digital connectivity will play a defining role in shaping the region’s future. He noted that strengthening cross-border power grids and digital networks will help lower costs, expand economic opportunities, and bring reliable electricity and internet access to hundreds of millions of people.
Through these initiatives, ADB is positioning itself to support a more integrated, resilient, and sustainable Asia-Pacific region, where improved infrastructure and connectivity can drive long-term economic growth and development.
