The Asian Development Bank (ADB) has announced plans to invest up to $70 billion by 2035 in two major initiatives aimed at enhancing power grids, promoting cross-border electricity trade, and improving broadband access in the Asia-Pacific region. ADB President Masato Kanda unveiled the Pan-Asia Power Grid Initiative and the Asia-Pacific Digital Highway during the bank’s 59th annual meeting in Samarkand, Uzbekistan. These initiatives are crucial for the future of the region, according to Kanda, who emphasized the importance of connecting power grids and digital networks across borders to reduce costs, create opportunities, and provide reliable power and digital access to millions of people.
The Pan-Asia Power Grid Initiative is designed to link national and subregional power systems to facilitate the cross-border transmission of renewable energy. On the other hand, the Asia-Pacific Digital Highway aims to bridge the digital infrastructure gap and support the region in leveraging artificial intelligence-driven growth. Under the Pan-Asia Power Grid Initiative, the ADB plans to raise $50 billion by 2035 to support cross-border power infrastructure projects, focusing on transmission lines, substations, storage facilities, and grid digitalization. Meanwhile, the Asia-Pacific Digital Highway initiative will see the ADB mobilizing $20 billion to fund digital corridors, data infrastructure, and economies ready for artificial intelligence integration.
Established in 1966, the ADB is a prominent multilateral development bank that promotes inclusive, resilient, and sustainable growth in Asia and the Pacific. With 69 members, including 50 from the region, the ADB plays a crucial role in supporting economic development and infrastructure projects across the region. Recently, the ADB revised its GDP growth forecast for developing Asia and the Pacific, projecting a growth rate of 4.7% in 2026, down from the previous estimate of 5.1%. Inflation is also expected to rise, reaching 5.2% in 2026 and then easing to 4.1% in 2027. ADB President Kanda attributed these changes to the ongoing crisis, emphasizing the need for proactive measures to address the challenges ahead.
