ADB commits $70 billion to link Asia's power grids and digital networks

The Asian Development Bank (ADB) announced it will back $70 billion in new energy and digital infrastructure initiatives by 2035, targeting the integration of power grids, cross-border electricity trade, and broadband expansion across Asia and the Pacific, according to a press release issued on 3 May 2026 in Samarkand, Uzbekistan. The plan is divided into two flagship programs: the Pan-Asia Power Grid Initiative and the Asia-Pacific Digital Highway. Both aim to build interconnected regional systems rather than isolated national projects. ADB President Masato Kanda unveiled the commitments during the bank’s Annual Meeting. The dual push seeks to lower costs, expand opportunity, and extend reliable power and digital access to hundreds of millions of people.

The Pan-Asia Power Grid Initiative builds on established subregional cooperation frameworks. These include the South Asia Subregional Economic Cooperation program, the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation grid interconnection planning, the ASEAN Power Grid, and the Central Asia Regional Economic Cooperation Energy Strategy 2030. The approach marks a shift away from country-to-country energy links toward a regional model of power trade. ADB will partner with governments, utilities, the private sector, and development partners. The goal is to unlock renewable energy at scale through shared infrastructure.

Under the power grid initiative, ADB plans to mobilize $50 billion by 2035 for cross-border infrastructure. Investments will cover transmission lines, substations, storage, grid digitalization, and generation projects tied to electricity trade, including renewable export projects, regional hubs, and hybrid generation-storage facilities. By 2035, ADB targets the integration of about 20 gigawatts of renewable energy across borders and the connection of 22,000 circuit-kilometers of transmission lines. The program is expected to improve energy access for 200 million people, create 840,000 jobs, and cut regional power sector emissions by 15%. ADB will finance about half of the initiative from its own resources and raise the rest through cofinancing, supported by up to $10 million in technical assistance.

The Asia-Pacific Digital Highway will mobilize $20 billion by 2035 for digital corridors, data infrastructure, and AI-ready economies. Investments will target terrestrial and subsea fiber networks, satellite links, and regional data centers, alongside policy support and skills programs. “Energy and digital access will define the region’s future,” said ADB President Masato Kanda. “These two initiatives build the systems Asia and the Pacific need to grow, compete, and connect. 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.”

The digital initiative aims to provide first-time broadband access to 200 million people and faster, more reliable connectivity for another 450 million across the region. It is expected to reduce connectivity costs in remote and landlocked areas by about 40% and help create 4 million jobs. ADB will finance $15 billion from its own resources and raise $5 billion through cofinancing. A Center for AI Innovation and Development will be established in Seoul, backed by a $20 million contribution from the Government of the Republic of Korea, to train about 3 million people in digital and AI-related skills by 2035. Founded in 1966, ADB is owned by 69 members, 50 of them from the region.