AI, IoT, blockchain, 5G to boost Sydney economy by $30bn

Artificial intelligence (AI), blockchain, 5G and the IoT will contribute $30.08 billion to Sydney’s economy by 2029, according to research by Digital Realty.

The cash injection — an increase of 80%, from $6.66 billion in 2019 — will happen as remote working becomes more mainstream, following the COVID-19 lockdown.

Forced social distancing measures have led to widespread work-from-home mandates and some firms, like Optus, are looking to continue this low-overhead model on a long-term basis. Interconnection technologies are expected to be pivotal in this transition.

Digital Realty APAC Managing Director Mark Smith said Sydney is leading the way nationally in terms of developing and adapting to new data-led technologies.

“Technologies such as AI, IoT and blockchain are already being used across various industries, and 5G usage is expected to grow with the rollout of commercial networks across Australia,” he said.

“With a highly qualified workforce, the large concentration of universities and research institutes and excellent communications infrastructure, Sydney should strengthen its position as a major digital economic centre of the Asia–Pacific region.”

Among the four technologies, AI will be the largest contributor, accounting for 46% of the value growth, with 22% to come from 5G, 21% from IoT and the remaining 11% from blockchain.

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