Amazon: Cloud computing could generate $12 trillion in GDP by 2030
New data indicates that cloud computing and cloud-enabled artificial intelligence have a substantial impact on gross domestic product (GDP) in the U.S. and elsewhere.
According to findings from three new studies released by the Amazon Web Services (AWS) hosted cloud computing division of Amazon and research and consulting firm Telecom Advisory Services, in 2023, cloud adoption overall contributed more than $1 trillion to the global GDP, and cloud-enabled AI generated more than $98 billion in GDP.
Looking forward, one of the studies projects that between 2024 and 2030, global GDP based on cloud adoption will surpass $12 trillion, and cloud-enabled AI will account for an additional $1.5 trillion.
Broken down by geographic region, the studies showed that cloud computing in 2023 accounted for more than $457 billion GDP in the U.S. and Canada, with $58 billion coming from cloud-enabled AI.
Across European countries, those figures equaled more than $321 billion in GDP from cloud and $30 billion accounted for by cloud-enabled AI. In Asia Pacific countries (APAC), GDP from cloud computing was more than $152 billion and from cloud-enabled AI was more than $7 billion, respectively.
By 2030, U.S. and Canada cloud adoption is forecasted to generate more than $5.8 trillion in GDP, with more than $857 billion resulting from cloud-enabled AI. In European countries, those numbers are predicted to reach nearly $2.6 trillion and nearly $434 billion, respectively.
Across APAC, cloud adoption is expected to generate more than $2.7 trillion in GDP and cloud-enabled AI is forecast to create more than $202 billion in GDP.
One of the three new studies also examined the impact of cloud computing technology on energy productivity. Energy productivity refers to the economic value (GDP) added per unit of energy (MWh) consumed.
According to the study, increased energy productivity allows businesses and industries to produce more goods and services with the same amount of energy, reducing production costs across industries.
This study found that when a country’s cloud adoption increased by 10%, it enhances energy productivity, leading to an average increase of $14.57 per megawatt hour (MWh). This improvement in energy productivity reduces production costs, which in turn enables businesses to reinvest these savings into innovation and expansion.
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As a result, the increased energy productivity contributes an estimated $216.8 billion GDP to the global economy.
"We have experienced firsthand the impact that cloud computing, as a driver of digital transformation, has had on our lives," said Dr. Raul Katz, president, Telecom Advisory Services and director of business strategy research at the Columbia Institute of Tele-Information of Columbia University. "Now, we are really able to put this perspective into monetary figures and what this means — as an industry — for our global economy."
