Digital innovation has been one of the defining features of the 21st century, with more people than ever benefiting from improved forms of communication, access to information and the digital economy. However, despite the rapid pace of change of the digital age, not everyone has benefited in the same way.
While many people have been integrating the internet into their daily lives, 2.6 billion people remain unconnected, equating to a third of the global population. This digital divide has a knock-on effect in areas such as economic growth, job creation and general standards of living.
With the rapid growth of artificial intelligence (AI), we are at the frontier of a new digital age, and development organizations have a crucial role in ensuring that the digital divide does not widen with the progress around the application of AI. At the same time, digital infrastructure also has an important role to play in sustainable development. According to the UN Development Programme and the International Telecommunication Union (ITU), digital technology has a marked impact on 70% of the Sustainable Development Goals.
The Asian Infrastructure Investment Bank (AIIB) recognizes how digital infrastructure can provide critical solutions for the challenges facing Asia and beyond. The Bank sees a clear need to support the development of digital infrastructure consistent with its mission to finance Infrastructure for Tomorrow.
Technology-enabled Infrastructure is one of the Bank’s four thematic priorities, reinforcing our commitment to support clients in harnessing significant benefits from technology application in infrastructure. Our digital infrastructure strategy outlines AIIB’s role in the growth of the digital economy in the 21st century.
As we celebrate the UN’s World Telecommunication and Information Society Day and recognize the ever-present digital divide, we recognize the need to not only enable equitable access to the benefits of the digital economy but also to ensure that digital infrastructure is developed sustainably and does not add to the growing climate crisis.
The core of strengthening digital connectivity is building solid, enabling digital infrastructure such as submarine communication cables, fiber optic cables and data centers. Some, such as data centers, require intense energy usage – i.e., electricity and water.
With growing connectivity and data demand, the sustainable development of such assets becomes increasingly important, including the integration of clean and renewable energy and an increasing focus on resource use efficiency.
Digital devices, terminals and software also come with their own climate challenges. For example, e-waste – discarded electronic appliances such as mobile phones – is a major issue. The ITU estimates 62 billion kilograms of e-waste was generated in 2022 alone.
The AIIB is working to develop solutions, both through its core investment operations and through its engagement in knowledge, policy and partnerships. In addition to ensuring best practices, project designs and technology use in its own digital infrastructure projects, AIIB has been working with municipal governments to reduce the climate impact of new infrastructure.
On the knowledge front, AIIB is engaging closely with institutions such as ITU and fellow multilateral development banks to collectively identify challenges and solutions in areas such as e-waste, digital infrastructure energy usage and sustainable financing mechanisms. AIIB launched the InfraTech Portal in 2024, a holistic, neutral and free platform that shares comprehensive information on infrastructure technologies to promote the adoption of technology and the development of innovative infrastructure technology solutions.
Adhering to climate considerations when developing digital infrastructure requires large-scale investment, which has largely been financed by the private sector. But the financing need has never been more urgent, and there is a clear role for multilateral development banks to play: to support the investment in digital infrastructure and facilitate the development of the broader digital economy while ensuring the transition is achieved sustainably.
As we mark World Telecommunication and Information Society Day, AIIB, together with our members and development partners, will continue to invest in and foster digital infrastructure solutions that will enable us to sustainably bridge the digital divide and make a positive economic impact in Asia and beyond.
