Data as Currency: The Global Information Economy

In the dawn of the digital era, data has emerged as a transformative force reshaping markets, power structures, and daily life. No longer mere byproducts of transactions or online behaviors, data sets are now traded, leveraged, and guarded with the vigilance once reserved for gold and oil. This article explores how data has become a foundational economic asset—behaving like currency in some respects, yet defying traditional financial frameworks in others—and how nations, corporations, and individuals can navigate this rapidly evolving landscape.

Why “Data as Currency”?

To understand why we speak of “data as currency,” we must first recognize its unusual characteristics. Unlike commodities that deplete with use, data is a non-rival, easily replicable asset that retains value even when copied. Every click, sensor reading, and purchase record can be reused to generate insights, feed algorithms, or inform decisions indefinitely.

Data fuels platform economies, AI, targeted advertising and underpins modern logistics, financial markets, and personalized services. Yet within this realm, distinctions matter:

• Raw data – logs, clicks, sensor readings that form the digital exhaust of everyday activity.
• Processed data – structured, cleaned, and organized for analysis and reporting.
• Models and insights – predictive scores, recommendation engines, and strategic intelligence derived from data.

Metaphorically, data wears many hats. It acts like money when exchanged for “free” social media and search services. It functions as capital when invested in training AI models or optimizing supply chains. And it serves as collateral or power, locking in users and shaping market narratives. Yet data differs from currency: units are not universally fungible, marginal costs are near zero, and no single price metric applies across categories.

Macro Backdrop: Global Economy and the Information Layer

Global growth forecasts have softened in recent years, with the IMF projecting around 3.2% growth in 2025 and 3.1% in 2026, while UN DESA anticipates 2.5% annually over the same period. The OECD foresees a slight dip to 2.9% in 2026 before rebounding to 3.1% in 2027. Amid this sluggish expansion, digitalization stands out as one of the few scarce levers boosting productivity across advanced and emerging economies.

Investment in AI, cloud infrastructure, and big data platforms is surging. Goldman Sachs estimates global AI spending could reach US$200 billion annually by 2025. Governments and corporations view data-driven initiatives as critical to reversing productivity slowdowns, driving innovation, and maintaining competitiveness in a fragmented global economy.

The Data Value Chain: From Raw Bits to Economic Power

Data’s journey from collection to influence reveals where “currency-like” traits materialize. Five stages shape its trajectory:

• Collection: Digital platforms, IoT devices, financial transactions, health records, satellites, and public data sources continuously generate raw inputs.
• Storage and Infrastructure: Hyperscale cloud providers and data centers offer the physical and virtual backbone, with significant energy and environmental footprints.
• Processing and Analytics: From basic dashboards to advanced AI and ML models, analytics transform raw bits into actionable intelligence.
• Monetization: Direct sales of data sets, licensing, APIs, targeted advertising, algorithmic pricing, risk scoring and IoT-based services drive revenue.
• Leverage and Power: Proprietary data creates high barriers to entry, and data network effects cement market leaders, often resulting in quasi-monopolies.

Value concentrates at later stages—analytics, model ownership, and platform control—rather than at the point of raw data capture. Entities with sophisticated processing capabilities and large user bases wield the most power.

Measuring the Data Economy: Size, Contribution, and Intangibles

Quantifying an information economy is challenging, as accounting standards rarely treat internally generated data as capital. Nevertheless, estimates suggest the core digital economy—ICT services, e-commerce, digital platforms—accounts for high single- to low double-digit shares of global GDP. Market valuations of tech giants increasingly reflect intangible assets such as software, brand, organizational capital, and data.

AI and data infrastructure investments underscore this trend. With annual AI spending poised to exceed US$200 billion, a significant portion funds data acquisition, cleaning, labeling, and storage. Meanwhile, cloud providers channel tens of billions into data center construction and maintenance, building the essential backbone for the digital economy.

Productivity gains from digitalization and AI remain uncertain, however. Scenarios vary: optimistic forecasts estimate up to a 1.5% annual GDP uplift, while cautionary analyses warn of widening inequality and labor market disruptions without adequate reskilling and policy support.

The Geopolitics and Geoeconomics of Data

Data policy and digital infrastructure sit at the heart of geopolitical competition. The United States leads in hyperscale cloud services, foundational AI models, and global consumer platforms, extending cross-border data flows through private firms. China, with its massive internal data pool and state-driven industrial strategy, prioritizes data sovereignty and security concerns, restricting foreign platforms while nurturing domestic champions.

• United States: Dominance in cloud, AI research, venture capital, and global platforms.
• China: Large domestic market, strict data localization, government-backed AI initiatives.
• Europe: Regulatory leadership, GDPR standards, data portability rules, and emerging AI frameworks.
• Emerging Markets: Rapid digital adoption, risk of exporting raw data while importing high-value analytics.

Rising trade tensions, protectionism, and data localization mandates threaten free data flows. Policymakers face the delicate balance of protecting citizens’ privacy and security without stifling innovation. Investors and business leaders must adapt strategies to navigate regulatory fragmentation and unlock cross-border data collaborations.

Conclusion: Navigating the New Information Economy

Data has earned its place alongside money and commodities as a pivotal economic asset, yet its unique properties demand new legal, accounting, and governance frameworks. Stakeholders worldwide must collaborate to:

• Develop transparent data valuation methods that recognize intangible assets.
• Establish robust privacy and ethical standards to maintain public trust.
• Promote interoperability and data-sharing initiatives to foster competition.
• Invest in skills and infrastructure to ensure inclusive digital growth.

By embracing data not just as a byproduct of digital interactions but as strategic capital for transformation, societies can unlock unprecedented productivity, innovation, and prosperity. The challenge lies in forging policies and partnerships that harness data’s power responsibly, equitably, and sustainably in this rapidly evolving global information economy.