Digital Realty has launched Cloud House, the latest facility in its Digital Docklands campus of highly-connected data centers in London’s Docklands area.
The investment will support the growth of London’s technology ecosystem, with the city set to experience a multibillion-pound technology boom, according to a new study conducted by Development Economics.
The Digital Realty-commissioned study, Digital Capitals Index: London, examines the value that innovative technologies will deliver to the city’s economy over the next decade through new jobs, businesses, industries and efficiencies in public services. The report focuses on four of the most widely discussed technology innovations: artificial intelligence (AI), the internet of things (IoT), 5G and blockchain.
These four innovative technologies combined will add £6.25 billion ($7.7 billion) to London’s economy in 2019, with IoT contributing the most at £3.09 billion ($3.8 billion) or 49 percent of the total, primarily through improvements in operational efficiencies.
AI is the second most impactful with an expected contribution in 2019 of £1.99 billion ($1.4 billion), comprising 32 percent of the total through applications such as cyber security.
Blockchain will generate £1.04 billion ($1.3 billion) of value (17 percent), and 5G, still in its early stages, will add £130 million ($160 million), or 2 percent.
By 2029, however, these new technologies are tipped to contribute an estimated £24.29 billion ($29.9 billion) to London’s economy, £18.04 billion ($22 billion) more than 2019.
The most growth is expected to come from 5G, with its economic contribution to London’s economy set to increase 3,000 percent over the next decade, from £130 million ($160 million) to £4.29 billion ($5.2 billion), as 5G becomes the foundation for the deployment of many other innovative, data-led technologies.
Digital Realty’s investment in the Digital Docklands is designed to underpin the growing importance of data-led technologies to London’s economy.
“Cities around the world are on the cusp of a technology revolution that could drive substantial economic growth,” said Jeff Tapley, EMEA managing director, Digital Realty. “The opening of our new facility in the Digital Docklands underscores Digital Realty’s commitment to supporting the technology revolution in London.”
