The global economy is currently navigating through a complex web of challenges marked by sluggish recovery and intensifying worldwide issuesIn this dynamic landscape, the digital economy emerges as a beacon of hope, offering critical support for transformation and growth across nationsNotably, the rise of disruptive technologies such as artificial intelligence (AI), big data, cloud computing, the Internet of Things (IoT), and blockchain has become a pivotal force driving social progress and catalyzing economic developmentThese innovations are fundamentally reshaping the landscape of production and the fabric of daily life.

According to recent analyses, countries are increasingly adopting digital technology strategies that prioritize technological breakthroughs and integration developmentThe focus is firmly set on significant future innovations and enhancements, with an emphasis on refining theoretical foundations, architectural advancements, and optimizing applications to meet evolving demandsThis strategic alignment showcases two predominant characteristics: accelerated deployment in key sectors and heightened comprehensive support.

In the context of economic recovery, digital industries are stepping up to provide critical backingGlobal trade in Information and Communication Technology (ICT) products is witnessing significant growth, representing an escalating share of total global tradeFor instance, data from 142 nations that have disclosed 2023 trade statistics indicate that ICT product exports reached a staggering $2.4 trillion, accounting for 11.1% of global exportsWhile this figure reflects a slight contraction from the previous year, it demonstrates a 2.8 percentage point increase compared to a decade agoWithin this sector, electronic integrated circuits dominate the export landscape, comprising over 30% of total ICT product exports, followed by telecommunications equipment and data processing machines.

The rapid development of large data centers is noteworthy as well

Advertisements

Recently, France announced plans to invest €109 billion in the AI sector over the coming years, a significant commitment akin to the United States' ambitious "Gateway to Space" initiativeThis U.S. program includes collaborative efforts between major players such as the U.SOpen AI Research Center, SoftBank Group of Japan, and Oracle Corporation, with an impressive $500 billion allocated for building data centers over the next four years to propel AI advancements.

French President Emmanuel Macron emphasized the magnitude of this technological revolution, outlining plans to double the number of young individuals trained in AI from 40,000 to 100,000. As digital applications proliferate and technologies like AI-generated content (AIGC) and large models gain traction, there is a corresponding surge in global demand for computational powerData centers, serving as essential infrastructures for high-performance computing, are increasingly positioned at the heart of this growing industry.

Recent reports indicate a trend towards the centralized development of data centers, with large facilities remaining the focal point of future construction effortsSince 2018, the global count of data centers has recorded a steady decline from over 460,000, landing at approximately 420,000 centers in 2023—a 2.2% decrease from the prior year, though with an acceleration in the rate of reductionProjections suggest that, between 2023 and 2027, the number of micro data centers will continue to slide slightly, while small, medium, and large data centers will experience positive growth—especially large facilities, whose numbers are expected to grow from 1,760 in 2023 to an impressive 1,955 by 2027.

As varying needs for computational power emerge from digital transformation and end-user digital consumption, along with the escalating requirements stemming from generative AI technologies, the demand for computation capacity is projected to increase exponentially

Advertisements

Reports suggest that newly established hyperscale data centers will have average capacities exceeding double their current volumes over the next six yearsNotably, the number of hyperscale data centers is expected to surpass 1,000 by early 2024, with approximately 120 to 130 new centers being added yearlyIn terms of regional IT loads, the United States continues to dominate the global data center capacity landscape, boasting a commanding 51% share, followed by Europe at 17% and China at 16%. Over the past four years, the total capacity of hyperscale data centers worldwide has doubled.

As technologies evolve, the convergence of Information Technology (IT), Communication Technology (CT), Operational Technology (OT), and Data Technology (DT) has become commonplaceThis cross-disciplinary innovation not only spurs the development of new business models and practices but also endows traditional industries with a robust impetus for transformationThe report highlights that such synergy is accelerating the implementation of new technologies while also cultivating a plethora of innovative solutions and service models that invigorate global economic growth.

Investment in digital transformation is soaring at an unprecedented rateRecent data indicates that global spending on digital transformation surpassed $2.1 trillion in 2023, constituting over 52% of total global investmentFuture projections are even more staggering, with expectations that digital transformation spending will balloon to $4.4 trillion by 2028, marking it as a cornerstone in driving the transformation and upgrading of the global economy.

When broken down by sector, it is evident that enhancing efficiency and optimizing services are focal points of corporate digital expendituresThe financial services sector, in particular, is witnessing a five-year compound annual growth rate (CAGR) expected to reach 20.5%. Among the most rapidly expanding sectors are those heavily reliant on AI and data analytics, including claims processing through robotic process automation, real-time financial advisory services, and digital banking experiences

Advertisements

Advertisements

Advertisements