THE Asian Development Bank (ADB) is ramping up efforts to deepen regional integration, committing $70 billion through 2035 to connect power grids and expand digital infrastructure across Asia and the Pacific.
ADB President Masato Kanda said the twin initiatives — the Pan-Asia Power Grid and the Asia-Pacific Digital Highway — were designed to build the systems needed for long-term growth and competitiveness in the region.
“Energy and digital access will define the region’s future,” he said, noting that stronger cross-border connectivity can expand economic opportunities while delivering reliable power and internet services to underserved populations.
Under the broader plan, the Manila-based multilateral lender will mobilize $50 billion for the Pan-Asia Power Grid Initiative and $20 billion for the Asia-Pacific Digital Highway by 2035.
The power grid initiative seeks to link national and subregional electricity systems to enable the flow of renewable energy across borders, marking a shift from traditional bilateral arrangements to a more integrated regional energy market.
The ADB said that investments would focus on transmission and grid integration, including the construction of cross-border transmission lines, substations, energy storage systems and digitalized grid technologies.
The program will also support power generation projects tied to electricity trade, such as renewable energy export facilities, regional renewable hubs and hybrid generation-storage systems.
By 2035, the initiative aims to integrate around 20 gigawatts of renewable energy capacity across borders, connect approximately 22,000 circuit-kilometers of transmission lines, and improve access to electricity for 200 million people. It is also expected to generate about 840,000 jobs and reduce carbon emissions by 15 percent.
The ADB said it expected to finance about half of the $50-billion power grid program from its own resources, with the remainder to be raised through cofinancing arrangements, including private sector participation.
Up to $10 million in technical assistance will be allocated to help harmonize regulations, establish common technical standards and prepare feasibility studies for major cross-border projects.
The initiative builds on existing regional cooperation frameworks including the South Asia Subregional Economic Cooperation program, Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation grid planning, Asean Power Grid and the Central Asia Regional Economic Cooperation Energy Strategy 2030.
The Asia-Pacific Digital Highway, meanwhile, aims to mobilize $20 billion to strengthen digital connectivity and support the region’s transition to an increasingly data- and AI-driven economy.
The program will finance the development of digital corridors and infrastructure, including terrestrial and subsea fiber-optic networks, satellite systems and regional data centers. It will also provide policy and regulatory support, particularly in areas such as cybersecurity risk management, while investing in skills development to enhance digital and artificial intelligence readiness.
The ADB said the initiative targeted the provision of first-time broadband access to 200 million people and improving connectivity for another 450 million by 2035. It is also expected to reduce internet costs in remote and landlocked areas by about 40 percent and create up to four million jobs.
Of the $20 billion, ADB will provide $15 billion from its own resources and raise the remaining $5 billion through cofinancing.
As part of the initiative, a Center for AI Innovation and Development will be established in Seoul with support from the South Korean government, which has pledged $20 million for the facility. The center is expected to promote responsible and inclusive AI adoption and train around three million people in digital and AI-related skills by 2035. NIÑA MYKA PAULINE ARCEO
