Amazon Web Services (AWS) and Telecom Advisory Services, a globally recognized research and consulting firm that specializes in economic impact studies, released a trio of new studies today measuring the economic impact of cloud computing, the adoption of artificial intelligence (AI), and increased energy productivity of using cloud computing.
The findings show that in 2023, cloud adoption overall contributed more than $1 trillion to the global gross domestic product (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.
Many people use cloud computing without even realizing it. Whether connecting with friends and family online, shopping online, checking bank statements, ordering food delivery or rideshare, or streaming movies, shows, and music, it’s all enabled by data centers and the cloud. To help enable this kind of connectivity and economic benefit, AWS offers 108 Availability Zones across 34 geographic regions—along with Local Zones, CloudFront and hundreds of Points of Presence—for its global customer base. Availability Zones are areas that consist of one or more discrete data centers, AWS Regions consist of multiple Availability Zones.
An AWS data center in northern Virginia.“We have experienced firsthand the impact that cloud computing, as a driver of digital transformation, has had on our lives. Now, we are really able to put this perspective into monetary figures and what this means—as an industry—for our global economy,” said Dr. Raul Katz, who leads Telecom Advisory Services, and developed the study.
Economic impact worldwide
When 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 are more than $321 billion from cloud and $30 billion accounted for by cloud AI. In Asia Pacific countries (APAC), it was more than $152 billion and $7 billion, respectively.
Over the next six years, cloud computing and AI usage are projected to bring far more economic benefits. By 2030, U.S. and Canada cloud adoption is forecasted to generate more than $5.8 trillion in GDP, with more than $857 billion thanks to cloud-enabled AI. In European countries, those numbers are nearly $2.6 trillion, and nearly $434 billion. Across APAC, cloud adoption is expected to generate more than $2.7 trillion and more than $202 billion in cloud-enabled AI.
“These figures may seem astronomical at first glance, but the data from 2023 shows how cloud adoption and cloud-enabled AI use across industries is already benefitting our economies,” said Katz, who is also the director of business strategy research at the Columbia Institute of Tele-Information of Columbia University. “Furthermore, the forecasted data shows incredible room for future growth. This is truly an exciting time for digital transformation and human development.”
Energy benefits of cloud computing
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, thereby reducing production costs across industries. By this measure, the cloud excels.
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. The increased energy productivity contributes an estimated $216.8 billion GDP to the global economy.
Cloud and AI usage are changing everyday lives
AWS has millions of active customers using its cloud technologies—including AI—to improve daily life. Whether it’s Lyell or Moderna revolutionizing healthcare; Blackboard and PBS reshaping and personalizing education; being able to binge-watch your favorite shows and movies on Prime Video, Netflix, and Disney+; or Delta Airlines and Ford better servicing the transportation industry; AWS is enabling a digital transformation across every industry. This includes customers born in the cloud such as AirBnB, Lyft, Slack, Snap, and Stripe, all of which helped revolutionize industries.
AI is now a multibillion-dollar revenue run rate business for AWS. Over 100,000 customers across industries—including adidas, New York Stock Exchange, Pfizer, Ryanair, and Toyota—are using AWS AI and machine learning services to reinvent experiences for their customers. Additionally, many of the leading generative AI models are trained and run on AWS.
AWS currently serves 245 countries and territories worldwide, and has announced plans for 18 more Availability Zones and six more AWS Regions. This allows customers and public sector organizations around the world to benefit from the power of cloud computing and advanced technologies like generative AI.
See the methodology and read the studies in depth:
