ADB Develops Digital Corridor Master Plan for Central Asia
The Asian Development Bank has unveiled a master plan for a CAREC digital corridor that will give Central Asian countries access to global submarine cable routes via a southern path.
AI will summarize what happened, why it matters and what it means for business.
The Asian Development Bank (ADB), with the assistance of Deloitte, has developed a master plan for a digital corridor under the Central Asia Regional Economic Cooperation (CAREC) program. The initiative aims to address the region's critical dependence on a single northern route for internet traffic and meet growing data exchange needs.
According to the study, international bandwidth demand in CAREC countries will grow from 39 Tbps in 2025 to 1,045 Tbps by 2039, a 27-fold increase. Currently, about 57% of regional traffic passes through two countries, with the northern corridor (via Russia) accounting for about 44% of all data transmitted. This creates risks of disruptions and keeps wholesale IP transit tariffs high.
The project involves creating a second independent southern gateway through Pakistan, providing connectivity to the PEACE, 2Africa, and UMO submarine cable systems. Experience from Pakistan and Kyrgyzstan shows that developing alternative routes reduces wholesale IP transit prices by 50–80%.
The project architecture includes four components: construction and modernization of backbone fiber-optic lines (including new cross-border connections), development of a two-tier data center ecosystem, integration of national IXPs into a unified regional peering structure, and harmonization of the regulatory framework.
Financing is expected to use a blended finance scheme involving public-private partnerships, investment consortia, and development institution resources. By 2031, global mobile traffic is expected to grow 2.5 times, and the economic impact of digitalization is projected to reach $12.5 trillion annually by 2030.
Context
What happened before
Generated by AI. Please check key details when accuracy matters.
International bandwidth demand in CAREC countries reached 39 Tbps
About 57% of regional traffic passes through two countries; the northern corridor (via Russia) accounts for about 44% of all data transmitted
ADB, with Deloitte's assistance, developed a master plan for a digital corridor under the CAREC program
International bandwidth demand in CAREC countries is expected to grow to 1,045 Tbps
Economic impact of digitalization is expected to reach $12.5 trillion annually