{"id":1956402,"date":"2026-05-26T19:28:30","date_gmt":"2026-05-26T16:28:30","guid":{"rendered":"https:\/\/analyse.optim.biz\/?p=1956402"},"modified":"2026-05-26T19:28:30","modified_gmt":"2026-05-26T16:28:30","slug":"mobilising-private-capital-to-scale-digital-infrastructure-in-asia","status":"publish","type":"post","link":"https:\/\/analyse.optim.biz\/?p=1956402","title":{"rendered":"Mobilising private capital to scale digital infrastructure in Asia"},"content":{"rendered":"<p>[analyse_image type=&#8221;featured&#8221; src=&#8221;https:\/\/images.euronews.com\/articles\/stories\/09\/77\/30\/74\/1200x675_cmsv2_a6d44d12-c8a7-5326-a24f-f84d6fea74a8-9773074.jpg&#8221;]<\/p>\n<article id=\"abe-2896788-pos1-c-latest-stories\" class=\"the-media-object m-modeMobile-1 m-modeDesktop-1 m-modeXL-1 the-media-object--has-video\" data-nid=\"2896788\" data-cid=\"9773302\" data-part-label=\"Partner content\">\n<figure id=\"abe-2896788-label-pos1-c-latest-stories\" class=\"the-media-object__figure\"><img decoding=\"async\" class=\"the-media-object__image\" src=\"https:\/\/images.euronews.com\/articles\/stories\/09\/77\/33\/02\/189x106_cmsv2_a3d3bb9b-7e5a-569d-83ef-7ea68cf0f339-9773302.jpg\" loading=\"lazy\" alt=\"Emergency personnel work at a level crossing where a train collided with a school van in Buggenhout, Belgium, Tuesday, 26 May, 2026. 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alternative to full EU membership&#8217;, Ukraine\u2019s deputy PM says\n  <\/p><\/div>\n<\/div>\n<\/article>\n<article id=\"abe-2896748-pos4-c-latest-stories-sidebar\" class=\"the-media-object m-modeMobile-2 m-modeDesktop-2 m-modeXL-2\" data-nid=\"2896748\" data-cid=\"9773076\" data-part-label=\"Partner content\">\n<figure id=\"abe-2896748-label-pos4-c-latest-stories-sidebar\" class=\"the-media-object__figure\"><img decoding=\"async\" class=\"the-media-object__image\" src=\"https:\/\/images.euronews.com\/articles\/stories\/09\/77\/15\/08\/189x106_cmsv2_a40601df-e0e7-5b42-add8-1902f9afdb7c-9771508.jpg\" loading=\"lazy\" alt=\"A sanitation worker from the Bunia city government disinfects the central market, as Ituri province continues to combat an Ebola outbreak, in Bunia, Congo, May 23, 2026.\" height=\"9\" width=\"16\"><\/figure>\n<div class=\"the-media-object__content\">\n                    Health news<\/p>\n<div class=\"the-media-object__title  \">\n<p>    EU and UNICEF send 100 tonnes of aid to DR Congo amid Ebola outbreak\n  <\/p><\/div>\n<\/div>\n<\/article>\n<article class=\"helper-site-row o-article-newsy\">\n<div class=\"helper-site-container o-article-newsy__container\">\n<div class=\"o-article-newsy__main\">\n<header class=\"h-grid o-article-newsy__main__header\">\n<nav aria-label=\"Breadcrumbs\" class=\"c-article-breadcrumbs\">\n<div id=\"adb-article-breadcrumb\" class=\"c-article-breadcrumbs__list\">\n<p>                          Europe<\/p>\n<p>                          Europe News<\/p><\/div>\n<\/nav>\n<h1 class=\"c-article-redesign-title\">\n                            Mobilising private capital to scale digital infrastructure in Asia<\/h1>\n<div class=\"c-article-image-video u-position-relative \">\n<div class=\"js-superdiv u-aspect-ratio-16x9 u-position-relative \" data-sponsored=\"Partner content\"><img fetchpriority=\"high\" decoding=\"async\" class=\"js-poster-img c-article-media__img\" src=\"https:\/\/images.euronews.com\/articles\/stories\/09\/77\/30\/74\/1536x864_cmsv2_a6d44d12-c8a7-5326-a24f-f84d6fea74a8-9773074.jpg\" width=\"1536\" height=\"864\" loading=\"eager\" alt=\"Hun Kim, Chief Partnerships Officer AIIB\"><\/div>\n<div class=\"c-article-caption u-position-absolute\"><i id=\"article-caption-content\" class=\"c-article-caption__content\"><span class=\"c-article-caption__text\"><br \/>\n              Hun Kim, Chief Partnerships Officer AIIB<br \/>\n                    <span class=\"u-color-white\">&#8211;\u00a0<\/span><span class=\"c-article-caption__copyright\">Copyright\u00a0<\/span><span class=\"c-article-caption__credit\">(c) AIIB<\/span><\/span><\/i><\/div>\n<div class=\"c-article-image-copyright c-article-image-copyright--novideo\">\n      Copyright\u00a0(c) AIIB\n  <\/div>\n<\/div>\n<\/header>\n<div class=\"h-grid o-article-newsy__main__body u-article-content\">\n<div class=\"o-article-newsy__contributors-publication-date\">\n<div class=\"c-article-contributors\">\n  By&amp;nbsp<b>Hun Kim, Chief Partnerships Officer, of the AIIB (Asian Infrastructure Investment Bank), a multilateral development bank headquartered in Beijing<\/b><\/div>\n<div class=\"c-article-publication-date\" data-timestamp=\"1779823710\">\n         Published on<br \/>\n            <time datetime=\"2026-05-26 21:28:30 +02:00\">26\/05\/2026 &#8211; 21:28 GMT+2<\/time><\/div>\n<\/div>\n<div class=\"c-article-partage-commentaire u-align-items-center u-display-flex\"><span class=\"c-article-partage-commentaire__links u-align-items-center u-display-flex u-justify-content-center js-c-article-partage-commentaire-share\"><span>Share<\/span><\/span><span>Comments<\/span><\/div>\n<div class=\"c-article-partage-commentaire-popup-overlay js-c-article-partage-commentaire-popup-overlay u-display-none\">\n<div id=\"js-c-article-partage-commentaire-popup\" class=\"c-article-partage-commentaire-popup js-c-article-partage-commentaire-popup\">\n<div 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width=\"48\" height=\"48\" alt=\"threads\" class=\"u-show-for-desktop\" loading=\"lazy\"><span class=\"u-display-flex u-gap-1 u-show-for-mobile-only\"><img decoding=\"async\" src=\"https:\/\/static.euronews.com\/website\/images\/vector\/social-icons\/article-redesign-whatsapp.svg\" width=\"24\" height=\"24\" alt=\"whatsapp\" loading=\"lazy\"><span>Whatsapp<\/span><\/span><img decoding=\"async\" src=\"https:\/\/static.euronews.com\/website\/images\/vector\/social-icons\/article-redesign-whatsapp.svg\" width=\"48\" height=\"48\" alt=\"whatsapp\" class=\"u-show-for-desktop\" loading=\"lazy\"><\/div>\n<\/div>\n<\/div>\n<\/div>\n<h2 class=\"c-article-summary\">\n        In an opinion piece for Euronews, Hun Kim, Chief Partnerships Officer of the Asian Infrastructure Investment Bank, said multilateral development banks should work together to catalyse private investment and expand digital infrastructure access across Asia.<br \/>\n    <\/h2>\n<div class=\"c-article-content js-article-content\">\n<p>Digital infrastructure is the backbone of economic growth, but investment in this space has been uneven. Many developing economies are struggling to expand basic digital connectivity while preparing for the artificial intelligence era, resulting in a double digital divide: inadequate basic access for hundreds of millions, compounded by growing gaps in AI (Artificial Intelligence) readiness.<\/p>\n<div>\n<div class=\"c-ad u-show-for-mobile-only\">\n<div class=\"c-ad__placeholder\"><img decoding=\"async\" class=\"c-ad__placeholder__logo\" src=\"https:\/\/static.euronews.com\/website\/images\/logos\/logo-euronews-stacked-outlined-72x72-grey-9.svg\" width=\"72\" height=\"72\" alt loading=\"lazy\"><span>ADVERTISEMENT<\/span><\/div>\n<\/div>\n<div class=\"c-ad u-show-for-desktop\">\n<div class=\"c-ad__placeholder\"><img decoding=\"async\" class=\"c-ad__placeholder__logo\" src=\"https:\/\/static.euronews.com\/website\/images\/logos\/logo-euronews-stacked-outlined-72x72-grey-9.svg\" width=\"72\" height=\"72\" alt loading=\"lazy\"><span>ADVERTISEMENT<\/span><\/div>\n<\/div>\n<\/div>\n<h2>Correlation between internet access and development levels<\/h2>\n<p>Limited affordable broadband connectivity, unreliable digital services, insufficient access to essential devices, and unstable electricity supply are longstanding challenges faced by developing economies. Despite increasing investment in AI infrastructure worldwide, the foundational connectivity network needed for AI readiness remains underfunded. <\/p>\n<p>Internet access directly correlates with national development levels. High-income economies have achieved near-universal internet access at 94%, but low-income countries have reached only 23%. This disparity not only slows AI adoption but also exacerbates inequity by denying AI\u2019s benefits to those without basic connectivity.<\/p>\n<p>Investment tends to focus on capital-intensive, top-tier digital assets such as data centers, cloud and AI infrastructure while foundational connectivity remains underfunded. This gap risks widening rather than narrowing societal and economic inequality.<\/p>\n<h2>Digital inclusion as a challenge for financing and coordination<\/h2>\n<p>Multilateral development banks (MDBs) should view digital infrastructure not as a discrete asset class but as an interconnected ecosystem with multiple layers: the foundational layer, the enabling layer, the compute\/cloud layer, and the application layer. Private capital naturally gravitates toward segments with predictable demand, scalable operations and bankable returns, such as the compute\/cloud layer. However, in rural and low-income areas, there is not enough commercial incentive for network expansion, a problem exacerbated by fragmented regulation, uncertain licensing and limited institutional capacity. Thus, digital inclusion becomes more of a financing and coordination challenge.<\/p>\n<p>Development stakeholders must structure risk frameworks that enable private capital to scale while strategically and efficiently deploying public resources to support segments currently unviable for market investment. A credible enabling environment requires stable and transparent rules, predictable licensing and reliable legal protection. MDBs help members build this credibility by standardizing fragmented regulations, strengthening local institutional capacity and reducing political and regulatory risks. When the enabling environment is credible and sustainable digital service demand is secured, the private sector can deliver impact at a scale far exceeding investments traditionally led by the public sector. Without these conditions, even well-designed projects may remain unbankable, leading to underinvestment in regions with the greatest development needs.<\/p>\n<div class=\"c-widget-related\" data-stories-id data-event=\"widget_related\">\n<div class=\"c-widget-related__title\"><b class=\"c-widget-related__title__text\" lang=\"en\">Related<\/b><\/div>\n<ul class=\"c-widget-related__list\">\n<li class=\"c-widget-related__item\">AIIB marks tenth anniversary with development funding milestone<\/li>\n<\/ul>\n<\/div>\n<h2>India and Indonesia illustrate how to build nationwide infrastructure<\/h2>\n<p>India and Indonesia illustrate how infrastructure sequencing and capital structure design can drive inclusive digital expansion. India prioritized foundational connectivity, leveraging state-directed and quasi-public models to build nationwide infrastructure, including rural broadband access. As market scale deepened and digital adoption accelerated, the government rolled out incentives, including long-term central tax exemptions, state electricity duty exemptions, concessional power tariffs, and single-window fast-track regulatory clearances to mobilize private investment. This created a virtuous cycle: broad connectivity fueled adoption, adoption strengthened demand, and demand directed private capital to higher-return digital assets. <\/p>\n<p>In Indonesia, where terrestrial networks incur high marginal costs to reach remote communities and project economics deteriorate rapidly beyond major urban corridors, catalytic development finance played a pivotal role in early connectivity expansion. A notable example is the Asian Infrastructure Investment Bank\u2019s non-sovereign support for Indonesia\u2019s Multifunctional Satellite Public-Private Partnership project, which connected underserved regions overlooked by commercial financiers. As Indonesia\u2019s digital market matured, data center expansion shifted closer to bankable sites and structured partnerships that derisked investments.<\/p>\n<h2>Access to digital infrastructure for the next billion users is possible<\/h2>\n<p>These instances show that success depends less on choosing a \u201cone-size-fits-all\u201d technology and more on aligning infrastructure sequencing, incentive frameworks and risk allocation across the entire digital ecosystem.<\/p>\n<p>Three dimensions will define the future of digital infrastructure scaling in Asia: expanding beyond bankable segments to close the access gap, building enabling ecosystems and enhancing collaboration between MDBs. Robust regulatory frameworks are essential for scaling digital public infrastructure. MDBs should align efforts to catalyze private investment, not compete with it. By pooling expertise, resources and risk appetite, MDBs can accelerate the development of bankable projects and expand access to digital infrastructure for the next billion users.<\/p>\n<div class=\"widget widget--type-euronews\nwidget--size-fullwidth\nwidget--align-center\"><\/p>\n<div class=\"widget__wrapper\">\n<figure class=\"widget__figure\">\n<div class=\"auto widget__ratio widget__ratio--16x9\">\n        \n      <\/div>\n<\/figure>\n<\/div>\n<\/div>\n<p>The Asian Infrastructure Investment Bank has a layered, ecosystem-driven approach that prioritizes technology-enabled infrastructure for the AI era while advancing inclusive growth. It supports commercially viable backbone networks, broadband expansion and data centers and attracts private investment to underserved communities. It also partners with governments to build digital public infrastructure through policy modules and implementation templates.<\/p>\n<h2>Asia can narrow the double digital divide<\/h2>\n<p>Asia\u2019s digital infrastructure gap should be seen as an investable opportunity, not a cost burden. The central problem is not a lack of investor interest in digital infrastructure but a concentration of capital in the compute layer that overshadows foundational connectivity.<\/p>\n<p>To bridge this gap, it is essential to align the roles of different stakeholders. Governments should establish credible, inclusive regulatory frameworks and strategically invest in segments unviable for market delivery. The private sector should innovate and scale investments where demand exists and risks are priced transparently. MDBs should convene stakeholders, derisk projects, and reduce transaction costs to accelerate the development of bankable projects.<\/p>\n<p>With coordinated action, Asia can narrow the double digital divide and expand digital opportunities to the next billion users, unlocking inclusive and sustainable growth for decades to come.<\/p>\n<p><em>Hun Kim serves as the Chief Partnerships Officer. In this role, he leads the development, management, and growth of the Bank\u2019s strategic partnerships; mobilizes resources; fosters collaborative relationships with global stakeholders; and oversees the coordination of the Bank\u2019s Multifunctional Hub Offices. He holds a Ph.D. in Applied Economics from the University of Minnesota, USA and an MA and BA in Economics from Yonsei University, Republic of Korea. Kim is from the Republic of Korea.<\/em><\/p>\n<\/div>\n<p>                                  Go to accessibility shortcuts<\/p>\n<div class=\"c-article-partage-commentaire u-align-items-center u-display-flex\"><span class=\"c-article-partage-commentaire__links u-align-items-center u-display-flex u-justify-content-center js-c-article-partage-commentaire-share\"><span>Share<\/span><\/span><span>Comments<\/span><\/div>\n<div id=\"adb-article-you-might-also-like\" class=\"perf-cv-auto c-article-you-might-also-like\">\n<h2 class=\"c-article-you-might-also-like__title\">\n        Read more<br \/>\n      <\/h2>\n<div class=\"c-article-you-might-also-like__item\">\n<h3>\n<p>                  &#8216;One of the worst accidents&#8217; at Belgian level crossing, officials say after deadly crash<\/p>\n<\/h3>\n<\/div>\n<div class=\"c-article-you-might-also-like__item\">\n<h3>\n<p>                  Corruption probes in Ukraine show Kyiv is doing &#8216;exactly what the EU wants,&#8217; deputy PM says<\/p>\n<\/h3>\n<\/div>\n<div class=\"c-article-you-might-also-like__item\">\n<h3>\n<p>                  Baltic drone incursions test EU security, von der Leyen warns, amid escalating hybrid threats<\/p>\n<\/h3>\n<\/div>\n<\/div>\n<div class=\"perf-cv-auto\">\n<ul id=\"adb-article-tags\" class=\"c-tags-list\">\n<li class=\"c-tags-list__item\">\n<section class=\"tc-cta\" data-twig-component=\"Cta-default\">\n  development<br \/>\n<\/section>\n<\/li>\n<li class=\"c-tags-list__item\">\n<section class=\"tc-cta\" data-twig-component=\"Cta-default\">\n  Artificial intelligence<br \/>\n<\/section>\n<\/li>\n<li class=\"c-tags-list__item\">\n<section class=\"tc-cta\" data-twig-component=\"Cta-default\">\n  Banking<br \/>\n<\/section>\n<\/li>\n<li class=\"c-tags-list__item\">\n<section class=\"tc-cta\" data-twig-component=\"Cta-default\">\n  Indonesia<br \/>\n<\/section>\n<\/li>\n<li class=\"c-tags-list__item\">\n<section class=\"tc-cta\" data-twig-component=\"Cta-default\">\n  Satellite Internet<br \/>\n<\/section>\n<\/li>\n<li class=\"c-tags-list__item\">\n<section class=\"tc-cta\" data-twig-component=\"Cta-default\">\n  India<br \/>\n<\/section>\n<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n<aside class=\"o-article-newsy__aside\">\n<div class=\"c-ad-wrapper o-article-newsy__aside__content-1\" data-ad-name=\"adzone-halfpage\">\n<div class=\"c-ad c-ad-halfpage u-show-for-desktop\">\n<div class=\"c-ad__placeholder\"><img loading=\"lazy\" decoding=\"async\" class=\"c-ad__placeholder__logo\" src=\"https:\/\/static.euronews.com\/website\/images\/logos\/logo-euronews-stacked-outlined-72x72-grey-9.svg\" width=\"72\" height=\"72\" alt><span>ADVERTISEMENT<\/span><\/div>\n<\/div>\n<div class=\"c-ad u-show-for-mobile-only\">\n<div class=\"c-ad__placeholder\"><img loading=\"lazy\" decoding=\"async\" class=\"c-ad__placeholder__logo\" src=\"https:\/\/static.euronews.com\/website\/images\/logos\/logo-euronews-stacked-outlined-72x72-grey-9.svg\" width=\"72\" height=\"72\" alt><span>ADVERTISEMENT<\/span><\/div>\n<\/div>\n<\/div>\n<div id=\"adb-article-top-stories\" class=\"perf-cv-auto c-top-stories\">\n<h2 class=\"c-top-stories__title\">Top stories<\/h2>\n<div class=\"c-top-stories__item\">\n<article id=\"abe-2895800-pos2-top-stories\" class=\"the-media-object m-modeMobile-2 m-modeDesktop-2 m-modeXL-2 the-media-object--has-video the-media-object--no-label\" data-nid=\"2895800\" data-cid=\"9769114\" data-part-label=\"Partner content\">\n<figure id=\"abe-2895800-label-pos2-top-stories\" class=\"the-media-object__figure\"><img decoding=\"async\" class=\"the-media-object__image\" src=\"https:\/\/images.euronews.com\/articles\/stories\/09\/76\/91\/14\/320x180_cmsv2_f5649824-02df-547d-b338-e70a935c315b-9769114.jpg\" loading=\"lazy\" alt=\"European Commission President Ursula von der Leyen listens during the meeting at the Presidential palace in Vilnius, Lithuania, Tuesday, May 26, 2026. \" height=\"9\" width=\"16\"><\/figure>\n<div class=\"the-media-object__content\">\n<h3 class=\"the-media-object__title  \">\n<p>    EU chief vows to stand firm against drones, disinformation campaigns<br \/>\n  <\/h3>\n<\/div>\n<\/article>\n<\/div>\n<div class=\"c-top-stories__item\">\n<article id=\"abe-2896763-pos3-top-stories\" class=\"the-media-object m-modeMobile-2 m-modeDesktop-2 m-modeXL-2 the-media-object--no-label\" data-nid=\"2896763\" data-cid=\"9773117\" data-part-label=\"Partner content\">\n<figure id=\"abe-2896763-label-pos3-top-stories\" class=\"the-media-object__figure\"><img decoding=\"async\" class=\"the-media-object__image\" src=\"https:\/\/images.euronews.com\/articles\/stories\/09\/77\/31\/17\/320x180_cmsv2_a64f24d8-46e3-5d10-923b-5182d41536eb-9773117.jpg\" loading=\"lazy\" alt=\"A man holds a sign depicting current Supreme Leader Ayatollah Mojtaba Khamenei at the Imam Khomeini Grand Mosque in Tehran, 24 May 2026\" height=\"9\" width=\"16\"><\/figure>\n<div class=\"the-media-object__content\">\n<h3 class=\"the-media-object__title  \">\n<p>    Ayatollah Khamenei breaks silence to vow no US bases in the region<br \/>\n  <\/h3>\n<\/div>\n<\/article>\n<\/div>\n<div class=\"c-top-stories__item\">\n<article id=\"abe-2896752-pos4-top-stories\" class=\"the-media-object m-modeMobile-2 m-modeDesktop-2 m-modeXL-2 the-media-object--no-label\" data-nid=\"2896752\" data-cid=\"9773094\" data-part-label=\"Partner content\">\n<figure id=\"abe-2896752-label-pos4-top-stories\" class=\"the-media-object__figure\"><img decoding=\"async\" class=\"the-media-object__image\" src=\"https:\/\/images.euronews.com\/articles\/stories\/09\/77\/30\/94\/320x180_cmsv2_e3282c8a-6180-54c4-a695-cd567942d189-9773094.jpg\" loading=\"lazy\" alt=\"German Economy and Energy Katherina Reiche arrives for the cabinet meeting at the chancellery in Berlin, Germany, Wednesday, May 13, 2026.\" height=\"9\" width=\"16\"><\/figure>\n<div class=\"the-media-object__content\">\n<h3 class=\"the-media-object__title  \">\n<p>    Germany 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school bus in Belgium<br \/>\n  <\/h3>\n<\/div>\n<\/article>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"perf-cv-auto c-ad-wrapper o-article-newsy__aside__content-3\" data-ad-name=\"adzone-halfpage\">\n<div class=\"c-ad c-ad-halfpage u-show-for-desktop\">\n<div class=\"c-ad__placeholder\"><img loading=\"lazy\" decoding=\"async\" class=\"c-ad__placeholder__logo\" src=\"https:\/\/static.euronews.com\/website\/images\/logos\/logo-euronews-stacked-outlined-72x72-grey-9.svg\" width=\"72\" height=\"72\" alt><span>ADVERTISEMENT<\/span><\/div>\n<\/div>\n<div class=\"c-ad u-show-for-mobile-only\">\n<div class=\"c-ad__placeholder\"><img loading=\"lazy\" decoding=\"async\" class=\"c-ad__placeholder__logo\" src=\"https:\/\/static.euronews.com\/website\/images\/logos\/logo-euronews-stacked-outlined-72x72-grey-9.svg\" width=\"72\" height=\"72\" alt><span>ADVERTISEMENT<\/span><\/div>\n<\/div>\n<\/div>\n<\/aside>\n<\/div>\n<\/article>\n<article id=\"abe-2895800-pos2-top-stories\" class=\"the-media-object m-modeMobile-2 m-modeDesktop-2 m-modeXL-2 the-media-object--has-video the-media-object--no-label\" data-nid=\"2895800\" data-cid=\"9769114\" data-part-label=\"Partner content\">\n<figure id=\"abe-2895800-label-pos2-top-stories\" class=\"the-media-object__figure\"><img decoding=\"async\" class=\"the-media-object__image\" src=\"https:\/\/images.euronews.com\/articles\/stories\/09\/76\/91\/14\/320x180_cmsv2_f5649824-02df-547d-b338-e70a935c315b-9769114.jpg\" loading=\"lazy\" alt=\"European Commission President Ursula von der Leyen listens during the meeting at the Presidential palace in Vilnius, Lithuania, Tuesday, May 26, 2026. \" height=\"9\" width=\"16\"><\/figure>\n<div class=\"the-media-object__content\">\n<h3 class=\"the-media-object__title  \">\n<p>    EU chief vows to stand firm against drones, disinformation campaigns<br \/>\n  <\/h3>\n<\/div>\n<\/article>\n<article id=\"abe-2896763-pos3-top-stories\" class=\"the-media-object m-modeMobile-2 m-modeDesktop-2 m-modeXL-2 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(AP Photo\/Marius Burgelman)\" height=\"9\" width=\"16\"><\/figure>\n<div class=\"the-media-object__content\">\n<h3 class=\"the-media-object__title  \">\n<p>    Belgium level crossing crash &#8216;one of the worst&#8217; in country\u2019s history<br \/>\n  <\/h3>\n<\/div>\n<\/article>\n<article id=\"abe-2895702-pos1-mostViewed\" class=\"the-media-object m-modeMobile-3 m-modeDesktop-3 m-modeXL-3 the-media-object--has-video the-media-object--no-label\" data-nid=\"2895702\" data-cid=\"9771279\" data-part-label=\"Partner content\">\n<div class=\"the-media-object__content\">\n<h3 class=\"the-media-object__title  \">\n<p>    Turkish tourists flock to Greece as rising costs put Greeks off Turkey<br \/>\n  <\/h3>\n<\/div>\n<\/article>\n<article id=\"abe-2895789-pos2-mostViewed\" class=\"the-media-object m-modeMobile-3 m-modeDesktop-3 m-modeXL-3 the-media-object--no-label\" data-nid=\"2895789\" data-cid=\"9769066\" data-part-label=\"Partner content\">\n<div class=\"the-media-object__content\">\n<h3 class=\"the-media-object__title  \">\n<p>    Where in Europe do households save most of their income?<br \/>\n  <\/h3>\n<\/div>\n<\/article>\n<article id=\"abe-2896462-pos3-mostViewed\" class=\"the-media-object m-modeMobile-3 m-modeDesktop-3 m-modeXL-3 the-media-object--no-label\" data-nid=\"2896462\" data-cid=\"9771735\" data-part-label=\"Partner content\">\n<div class=\"the-media-object__content\">\n<h3 class=\"the-media-object__title  \">\n<p>    Two suspected Ebola cases detected in Italy test negative<br \/>\n  <\/h3>\n<\/div>\n<\/article>\n<article id=\"abe-2896440-pos4-mostViewed\" class=\"the-media-object m-modeMobile-3 m-modeDesktop-3 m-modeXL-3 the-media-object--no-label\" data-nid=\"2896440\" data-cid=\"9771602\" data-part-label=\"Partner content\">\n<div class=\"the-media-object__content\">\n<h3 class=\"the-media-object__title  \">\n<p>    Heat pumps vs AC: Which is the best way to stay cool during heatwaves?<br \/>\n  <\/h3>\n<\/div>\n<\/article>\n<article id=\"abe-2896661-pos5-mostViewed\" class=\"the-media-object m-modeMobile-3 m-modeDesktop-3 m-modeXL-3 the-media-object--has-video the-media-object--no-label\" data-nid=\"2896661\" data-cid=\"9772683\" data-part-label=\"Partner content\">\n<div class=\"the-media-object__content\">\n<h3 class=\"the-media-object__title  \">\n<p>    Four dead and two injured after train hits school bus in Belgium<br \/>\n  <\/h3>\n<\/div>\n<\/article>\n<div class=\"articleBody\" data-key=\"articleBody\">Digital infrastructure is the backbone of economic growth, but investment in this space has been uneven. Many developing economies are struggling to expand basic digital connectivity while preparing for the artificial intelligence era, resulting in a double digital divide: inadequate basic access for hundreds of millions, compounded by growing gaps in AI (Artificial Intelligence) readiness.Correlation between internet access and development levelsLimited affordable broadband connectivity, unreliable digital services, insufficient access to essential devices, and unstable electricity supply are longstanding challenges faced by developing economies. Despite increasing investment in AI infrastructure worldwide, the foundational connectivity network needed for AI readiness remains underfunded.Internet access directly correlates with national development levels. High-income economies have achieved near-universal internet access at 94%, but low-income countries have reached only 23%. This disparity not only slows AI adoption but also exacerbates inequity by denying AI\u2019s benefits to those without basic connectivity.Investment tends to focus on capital-intensive, top-tier digital assets such as data centers, cloud and AI infrastructure while foundational connectivity remains underfunded. This gap risks widening rather than narrowing societal and economic inequality.Digital inclusion as a challenge for financing and coordinationMultilateral development banks (MDBs) should view digital infrastructure not as a discrete asset class but as an interconnected ecosystem with multiple layers: the foundational layer, the enabling layer, the compute\/cloud layer, and the application layer. Private capital naturally gravitates toward segments with predictable demand, scalable operations and bankable returns, such as the compute\/cloud layer. However, in rural and low-income areas, there is not enough commercial incentive for network expansion, a problem exacerbated by fragmented regulation, uncertain licensing and limited institutional capacity. Thus, digital inclusion becomes more of a financing and coordination challenge.Development stakeholders must structure risk frameworks that enable private capital to scale while strategically and efficiently deploying public resources to support segments currently unviable for market investment. A credible enabling environment requires stable and transparent rules, predictable licensing and reliable legal protection. MDBs help members build this credibility by standardizing fragmented regulations, strengthening local institutional capacity and reducing political and regulatory risks. When the enabling environment is credible and sustainable digital service demand is secured, the private sector can deliver impact at a scale far exceeding investments traditionally led by the public sector. Without these conditions, even well-designed projects may remain unbankable, leading to underinvestment in regions with the greatest development needs.India and Indonesia illustrate how to build nationwide infrastructureIndia and Indonesia illustrate how infrastructure sequencing and capital structure design can drive inclusive digital expansion. India prioritized foundational connectivity, leveraging state-directed and quasi-public models to build nationwide infrastructure, including rural broadband access. As market scale deepened and digital adoption accelerated, the government rolled out incentives, including long-term central tax exemptions, state electricity duty exemptions, concessional power tariffs, and single-window fast-track regulatory clearances to mobilize private investment. This created a virtuous cycle: broad connectivity fueled adoption, adoption strengthened demand, and demand directed private capital to higher-return digital assets.In Indonesia, where terrestrial networks incur high marginal costs to reach remote communities and project economics deteriorate rapidly beyond major urban corridors, catalytic development finance played a pivotal role in early connectivity expansion. A notable example is the Asian Infrastructure Investment Bank\u2019s non-sovereign support for Indonesia\u2019s Multifunctional Satellite Public-Private Partnership project, which connected underserved regions overlooked by commercial financiers. As Indonesia\u2019s digital market matured, data center expansion shifted closer to bankable sites and structured partnerships that derisked investments.Access to digital infrastructure for the next billion users is possibleThese instances show that success depends less on choosing a \u201cone-size-fits-all\u201d technology and more on aligning infrastructure sequencing, incentive frameworks and risk allocation across the entire digital ecosystem.Three dimensions will define the future of digital infrastructure scaling in Asia: expanding beyond bankable segments to close the access gap, building enabling ecosystems and enhancing collaboration between MDBs. Robust regulatory frameworks are essential for scaling digital public infrastructure. MDBs should align efforts to catalyze private investment, not compete with it. By pooling expertise, resources and risk appetite, MDBs can accelerate the development of bankable projects and expand access to digital infrastructure for the next billion users.The Asian Infrastructure Investment Bank has a layered, ecosystem-driven approach that prioritizes technology-enabled infrastructure for the AI era while advancing inclusive growth. It supports commercially viable backbone networks, broadband expansion and data centers and attracts private investment to underserved communities. It also partners with governments to build digital public infrastructure through policy modules and implementation templates.Asia can narrow the double digital divideAsia\u2019s digital infrastructure gap should be seen as an investable opportunity, not a cost burden. The central problem is not a lack of investor interest in digital infrastructure but a concentration of capital in the compute layer that overshadows foundational connectivity.To bridge this gap, it is essential to align the roles of different stakeholders. Governments should establish credible, inclusive regulatory frameworks and strategically invest in segments unviable for market delivery. The private sector should innovate and scale investments where demand exists and risks are priced transparently. MDBs should convene stakeholders, derisk projects, and reduce transaction costs to accelerate the development of bankable projects.With coordinated action, Asia can narrow the double digital divide and expand digital opportunities to the next billion users, unlocking inclusive and sustainable growth for decades to come.Hun Kim serves as the Chief Partnerships Officer. In this role, he leads the development, management, and growth of the Bank\u2019s strategic partnerships; mobilizes resources; fosters collaborative relationships with global stakeholders; and oversees the coordination of the Bank\u2019s Multifunctional Hub Offices. He holds a Ph.D. in Applied Economics from the University of Minnesota, USA and an MA and BA in Economics from Yonsei University, Republic of Korea. 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