On November 27, Amazon Web Services (AWS), in collaboration with Telecom Advisory Services, a global leader in economic impact research, released three new studies evaluating the economic impact of cloud computing, the adoption of artificial intelligence (AI), and how cloud technology enhances energy productivity.
According to the findings, in 2023, enterprises migrating to the cloud contributed over $1 trillion to global GDP, with cloud-based AI contributing an additional $98 billion. One of the studies forecasts that from 2024 to 2030, global GDP driven by cloud computing will exceed $12 trillion, while cloud-based AI is expected to add $1.5 trillion.
Economic Impact Across the Globe
The research reveals significant contributions from cloud computing in various regions:
•North America: In 2023, cloud computing added over $434 billion to the GDP of the U.S. and Canada, with $56 billion attributed to cloud-based AI.
•Europe: Cloud computing contributed more than $321 billion, of which $30 billion came from cloud-based AI.
•Asia-Pacific: The region saw $152 billion in GDP from cloud computing, with $7 billion from AI.
Looking ahead, the economic benefits of cloud computing and AI are expected to grow:
•By 2030, cloud computing could add over $5.6 trillion to the GDP of the U.S. and Canada, with $842 billion coming from cloud-based AI.
•In Europe, these figures are projected to reach $2.7 trillion and $434 billion, respectively.
•The Asia-Pacific region is anticipated to see over $2.7 trillion in GDP from cloud computing, with more than $202 billion contributed by AI.
Cloud Computing’s Role in Everyday Life
Data centers and cloud computing are now integral to modern life. AWS serves global customers across 34 geographic regions with 108 availability zones, as well as local zones, Amazon CloudFront, and hundreds of edge locations. Many people unknowingly rely on cloud computing for activities like staying connected with family, online shopping, banking, food delivery, ride-hailing, and streaming movies or music.
Dr. Raul Katz, the study’s lead author and Director of Business Strategy Research at Columbia University’s Columbia Institute of Tele-Information, highlighted cloud computing’s transformative role. “Cloud computing is a key driver of digital transformation, and now we can quantify its impact on the global economy. These figures, while seemingly astronomical, reflect the real and growing benefits of businesses migrating to the cloud and using AI. The projections underscore the enormous potential for future growth—this truly marks a milestone in digital transformation and human progress,” Katz stated.
Energy Efficiency Gains from Cloud Migration
One of the studies explored how cloud adoption improves energy productivity, which measures the economic value (GDP) generated per unit of energy consumed (measured in megawatt-hours). Enhanced energy productivity allows companies to produce more goods and services with the same energy input, thereby reducing production costs.
The study found that a 10% increase in cloud adoption in a given country can significantly boost its energy productivity. For example, if energy productivity increases by $14.57 per megawatt-hour, businesses can generate more goods and services without consuming additional energy. This optimization can lead to $216.8 billion in added global GDP, as companies reinvest energy cost savings into innovation and growth.
Transforming Lives with Cloud Computing and AI
AWS’s millions of active customers are leveraging cloud and AI technologies to improve daily life. From supporting breakthroughs in healthcare with Moderna and Lyell to advancing digital education through Blackboard and PBS, AWS empowers industries worldwide. It also enhances entertainment experiences for users on platforms like Netflix, Prime Video, and Disney+, while improving service delivery for companies like Delta Airlines and Ford.
Cloud-native companies like Airbnb, Lyft, Slack, Snap, and Stripe are driving industry disruption, thanks to AWS. Additionally, AWS’s AI and machine learning services, used by over 100,000 customers, are reshaping industries. Customers include Adidas, the New York Stock Exchange, Pfizer, Ryanair, and Toyota.
AWS also hosts leading generative AI models for training and deployment, cementing its role in technological innovation. The company operates in 245 countries and regions and plans to launch 18 new availability zones and six new regions, ensuring that businesses and public sector organizations worldwide can benefit from cloud computing and cutting-edge AI technologies.
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