en.Wedoany.com Reported - The Asian Development Bank (ADB) has launched an initiative to invest $70 billion by 2035 in building continent-wide cross-border power grids and digital infrastructure in the Asia-Pacific region, aiming to support the surge in electricity demand driven by artificial intelligence (AI) data centers, semiconductor manufacturing, and the digital economy.
The ADB believes that without fundamentally changing how electricity flows across borders, the Asia-Pacific region cannot meet the challenges posed by the upcoming AI-driven economy. The institution aims to build an interconnected grid capable of delivering renewable energy to areas with the highest demand, rather than allowing each country to develop isolated power systems. This vision includes two core projects: the Pan-Asia Power Grid Initiative, requiring $50 billion, and the Asia-Pacific Digital Highway, requiring $20 billion.
ADB President Masato Kanda, when launching these initiatives at the ADB Annual Meeting in Samarkand, Uzbekistan, last May, stated that energy and digital access will define the region's future. He believes that by connecting cross-border power grids and digital networks, costs can be reduced, opportunities expanded, and reliable electricity and digital access provided to hundreds of millions of people.
This strategy reflects the real pressures faced by Asian governments. Global technology companies are investing billions of dollars in building hyperscale data centers in Singapore, Malaysia, Indonesia, Thailand, and the Philippines. These facilities operate around the clock, consuming vast amounts of electricity to support AI training, cloud computing, and digital services. Advanced semiconductor manufacturing plants have even higher requirements for power stability and uninterrupted supply. In the Philippines, the proposed Pax Silica Economic Security Corridor in New Clark City is being developed as part of the Luzon Economic Corridor, aiming to become a future hub for AI, semiconductor manufacturing, and advanced technologies, but its success ultimately depends on adequate electricity supply.
The Pan-Asia Power Grid Initiative allows countries rich in solar, wind, and hydropower resources to export electricity through interconnected transmission grids, rather than treating renewable energy solely as a domestic resource. Instead of each country independently building capacity to meet peak demand, cross-border electricity trading can reduce costs and improve reliability. The plan covers Southeast Asia, South Asia, Central Asia, West Asia, and the Pacific region, building on existing cooperation mechanisms such as the ASEAN Power Grid.
The initiative aims to raise $50 billion by 2035 for constructing cross-border transmission lines, substations, battery storage systems, and digital grid technologies. The ADB expects to fund about half from its own resources, with the remainder raised from governments, development partners, and private investors. Specific targets include integrating approximately 20 gigawatts of cross-border renewable energy, building 22,000 circuit kilometers of transmission lines, improving electricity access for 200 million people, reducing regional power sector emissions by 15%, and creating about 840,000 jobs.
The accompanying Asia-Pacific Digital Highway project requires $20 billion to fund fiber optic corridors, submarine cables, satellite connections, and regional data centers. The ADB expects this digital initiative to provide first-time broadband access to 200 million people, improve connectivity for another 450 million people, and reduce communication costs in remote and landlocked areas by about 40%. The Center for AI Innovation and Development in Seoul, funded by a $20 million grant from South Korea, is expected to train approximately 3 million people in AI and digital skills by 2035.
The Pan-Asia Power Grid Initiative was a major topic at the recent Asia Clean Energy Forum in Manila. Participants discussed technical and regulatory barriers hindering regional electricity trade. However, the announcement also drew criticism from climate and civil society organizations. Demonstrators led by the NGO Forum on ADB called on the bank to abandon its remaining support for fossil fuels and strengthen protections for communities affected by energy projects. Elle Bartolome, representing the Philippine Movement for Climate Justice, criticized the ADB for leaving a "dirty legacy of destructive business" in Asia.
Lidy Nacpil, coordinator of the Asian Peoples' Movement on Debt and Development, stated that the ADB continues to leave room for oil and gas expansion while promoting "false energy solutions." The coalition also urged the ADB to exercise greater caution in funding critical minerals, mining, and nuclear projects, warning that competition for access to materials should not come at the expense of environmental safeguards or indigenous communities.
For the ADB, the challenge is no longer just financing, but building an interconnected continental power system capable of rapidly delivering clean electricity to keep pace with the world's fastest-growing digital economy. Whether future AI hubs rely entirely on domestic renewable energy or supplement it through regional electricity trading, countries that secure access to sufficient, clean, and affordable electricity will be best positioned to lead the next generation of AI manufacturing and innovation. The Pan-Asia Power Grid is rapidly becoming a crucial component of Asia's AI strategy.
