NEW YORK, Nov. 11, 2019 /PRNewswire/
-- Digital Realty (NYSE: DLR), a leading global provider
of data center, colocation and interconnection solutions, today
unveiled new research predicting that by 2029 AI, IoT, blockchain
and 5G will drive $721 billion in
revenue per year to 60 of the largest cities around the world.
Through new jobs, new businesses, new industries, improved public
services and more, the following 10 cities (ranked in order) are
predicted to be the world's leading digital capitals by 2029:
- New York City
- Los Angeles
- Tokyo
- San Francisco
- Singapore
- London
- Chicago
- Toronto
- Paris
- Hong Kong
Poised to create the greatest impact in the next decade, AI,
IoT, 5G and blockchain have data at their core. This comes as no
surprise to Digital Realty, considering there are 294 billion
emails and 5 billion internet searches1 and 482.6
billion electronic financial transactions2 every day,
and that's without touching on the data use we don't see – from
shipment tracking to factory automation – and the amount of data we
use is only going to grow more rapidly. However, data led
technology is just starting out. The business applications of these
four technologies alone will create a new explosion in data and the
value it brings to people and businesses around the world.
The economic contribution of digital information has previously
been termed the data economy: this is the financial and economic
value generated by the creation, storage, retrieval and use of
highly-detailed business and organizational data at high speeds.
The report specifically assesses the current and potential economic
value innovative data led technologies will bring to 60 cities
around the world in the next decade.
"We wanted to build on previous reports and uncover the role
cities will play in the future data economy," says Chris Sharp, CTO of Digital Realty. "It's no
surprise that cities like New
York, Tokyo and
London occupy a lofty position in
the report. Not only are they hubs for the highest density of
digital commercial activity and digitally-skilled workforces, but
also their laser focus on the creation of new digital technologies
and applications makes them prime examples of what's possible in
the world's data economy."
By 2029: AI Dominates
Among the four leading technologies, AI will account for 46 percent
of value growth, increasing in value by $255
billion per year by 2029, and adding an average of
$5.13 billion to each city every
year.
A further 22 percent of the overall increase is expected from 5G
and nearly 21 percent from IoT, while blockchain is expected to
account for the final 11 percent. Although the biggest contributor
is AI, 5G is expected to grow at the fastest rate over the
2019-2029 period: this is because 5G is an emerging technology and
is expected to grow rapidly from a low baseline position.
New York City: Leading the
World's Data Economy
New York City is a major
powerhouse for the world's data economy. The city is filled with
entrepreneurial people who work in the biggest industries such a
legal, accounting, and business and it will continue to become a
major ecosystem of data excellence. By 2029, New York is expected to have cemented its
title as the world's data capital. At that time, the annual
contribution of AI, IoT, blockchain and 5G is expected to grow to
$46.14 billion, up from $11.15 billion in 2019. While the annual
financial contribution of these four specific technologies to the
NYC economy is currently the second largest of any city in the
world (with only Tokyo
experiencing a greater annual contribution), NYC is expected to
generate the greatest annual value from the four technologies by
2029.
Technology
|
Annual value (in
billions)
|
Percent of overall
city economy
|
2019
|
2029
|
2019
|
2029
|
AI
|
3.51
|
19.86
|
0.61%
|
2.36%
|
Blockchain
|
1.66
|
5.28
|
0.29%
|
0.63%
|
IoT
|
5.75
|
12.85
|
0.99%
|
1.53%
|
5G
|
0.23
|
8.15
|
0.03%
|
0.97%
|
Table 1: NYC –
Estimated value of 4 digital technologies: 2019 (US$ billions, 2019
prices)
|
By 2029, these four technologies in combination are expected to
contribute just under 5.5 percent to the overall NYC economy, up
from around 1.9 percent in 2019. The greatest share of this growth
(nearly 47 percent) is attributable to AI with a further 23 percent
coming from 5G.
Today, New York City leads the
world in turning data into real value and it will for the next
decade, but Shanghai is catching
up rapidly, growing faster than any other data economy in the next
decade. It is predicted that Shanghai's data economy will grow faster than
any other and move eight places up to become the 29th latest data
economy by 2029. In the next decade, it will become the global
capital for blockchain (generating US$6.12
billion per year) and rank in the top three largest centers
for:
- AI: US$17.59 billion per year -
in 3rd place after Tokyo (2nd,
US$17.73 billion per year) and
New York City (1st, US$19.86 billion per year)
- IoT: US$11.38 billion per year) -
in 3rd place after Tokyo (2nd,
US$11.97 billion per year) and
New York City (1st, US$12.85 billion per year)
- 5G (generating US$7.21 billion
per year) - surpassing Tokyo (3rd,
US$7.02 billion per year) to land in
2nd place after New York City
(1st, US$7.92 billion per year)
New York and Shanghai look set to lead because they are
abundant in three characteristics that are apparent in the fastest
growing data economies including a strong consumer demand for
data-led products and services, quality technical universities and
well established infrastructure and low latency data
connectivity.
To download the full reports please visit:
- Global Digital Capitals Index:
https://www.digitalrealty.com/global-digital-capitals-index
- 2019 NYC Digital Capitals Index:
https://www.digitalrealty.com/nycreport
About Digital Realty
Digital Realty supports the data
center, colocation and interconnection strategies of customers
across the Americas, EMEA and APAC, ranging from cloud and
information technology services, communications and social
networking to financial services, manufacturing, energy, healthcare
and consumer products. To learn more about Digital Realty,
please visit digitalrealty.com or follow us on LinkedIn
and Twitter.
Methodology
Research was undertaken
by Development Economics, an economic consultancy providing
highly robust research, market analysis and advice for private and
public sector clients. Clients include Barclays, NFU, RBS and
Facebook.
Development Economics' approach to the study involved several
key steps.
- First, a desk-based review was undertaken focusing on the
evidence regarding the business benefits of digital technology. The
review also identified potential sources of the latest available
data covering international business and economic datasets.
- Second, Development Economics used economic, demographic and
business datasets to identify and benchmark global cities for
comparative review.
- Third, a set of potential digital economy indicators was
proposed and agreed with Digital Realty. We selected 10 indicators
covering the following factors:
-
- The overall size of the city-level economy
- The activity scale of companies operating in data-intensive
business sectors and the rate of adoption of digital technology
among other businesses
- The scale of consumer demand for data and digital
applications
- R&D: the presence of a leading university or universities
in cities
- The quality of telecommunications infrastructure
- Human capital: the proportion of workforce with advanced data
skills
- The stability of the local political environment, levels of
crime and other metrics of city governance
- Quality of life indicators, such as the quality of health,
public education, the efficiency of public transport and
environmental indicators
- Support for the data sector such as open data policies
Publicly available datasets, sourced from NGO and governmental
groups, were used for each of the ten indicators and fed into a set
of recognized models for the weighting of economic impact.
__________________________________________
1 https://www.visualcapitalist.com/how-much-data-is-generated-each-day/
2https://worldpaymentsreport.com/wp-content/uploads/sites/5/2018/10/World-Payments-Report-2018.pdf
Media and Industry Analyst Contact:
Marc Musgrove
Digital Realty
+1 (415) 508-2812
mmusgrove@digitalrealty.com
Investor Relations
John
Stewart
Digital Realty
+1 (415) 738-6500
jstewart@digitalrealty.com
Safe Harbor Statement
This press release contains forward-looking statements which are
based on current expectations, forecasts and assumptions that
involve risks and uncertainties that could cause actual outcomes
and results to differ materially, including statements related to
the Digital Capitals research and reports, including the
methodology, expectations for the digital economy, AI, IoT, 5G and
blockchain, and growth in specific cities, including New York
City. For a list and description of such risks and
uncertainties, see the reports and other filings by the company
with the U.S. Securities and Exchange Commission. The company
disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
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SOURCE Digital Realty