The Asian Development Bank (ADB) has announced a massive $70 billion investment programme designed to overhaul energy and digital connectivity across the Asia-Pacific region by 2035. The initiative seeks to integrate power grids, facilitate cross-border electricity trade, and significantly expand high-speed internet access to hundreds of millions of people.
The dual-track plan is built on the premise that regional growth will increasingly rely on seamless cross-border networks as energy demand rises and the pace of technological change accelerates.
“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,” ADB President Masato Kanda said in a statement released on Sunday.
The cornerstone of the announcement is the $50 billion Pan-Asia Power Grid Initiative (PAGI). This ambitious project aims to construct 22,000 circuit-kilometres oftransmission lines and integrate approximately 20 gigawatts of renewable energy across national borders.
By 2035, the ADB expects PAGI to improve electricity access for 200 million people and reduce regional power-sector emissions by an estimated 15%. The bank has committed to financing half of the grid initiative from its own resources, with the remaining $25 billion expected to be mobilised through co-financing and private sector investment.
The remaining $20 billion of the programme will be directed toward the Asia-Pacific Digital Highway. This fund will support the development of critical infrastructure, including subsea cables, fibre-optic networks, satellite links, and regional data centres.
The digital programme aims to:
- Provide first-time broadband access to 200 million people.
- Improve connectivity for an additional 450 million people.
- Reduce digital costs in remote areas by approximately 40%.
- Generate up to 4 million new jobs across the region.
The ADB intends to provide $15 billion in direct financing for these digital projects.
The announcement comes as nations across the Asia-Pacific seek to decouple economic growth from carbon emissions while addressing the digital divide that persists in many developing member countries. By focusing on cross-border infrastructure, the ADB aims to create a more resilient and efficient regional economy capable of supporting the high energy and data demands of the next decade.
