Data as a Resource
Why data is called 'the new oil,' who controls it, and the emerging debate over data governance, ownership, and rights.
The Data Economy
Data has become the world's most valuable resource. In 2023, the global data economy was estimated at roughly $280 billion and growing at 25% annually. The comparison to oil is apt in some ways: like oil, data powers the modern economy; like oil, its extraction creates externalities; like oil, control over data confers geopolitical power. But data differs from oil in a crucial way: it is non-rivalrous (using it does not deplete it) and its value increases with volume.
The seven largest companies in the world by market capitalization are all data companies. Google's data on search behavior drives its advertising business. Amazon's data on consumer preferences powers its recommendation engine. Tesla's driving data trains its autonomous systems. The common thread: companies that collect the most data build the best AI, which attracts more users, which generates more data -- a self-reinforcing cycle that concentrates power.
