At a time when the ongoing Gulf conflict makes it painfully clear how important oil is to the world economy, it is perhaps a little off-color to discuss whether data is all set to replace oil as the be-all and end-all of modern-day living. Clive Humbly, a British data scientist, may have come up with the very catchy phrase “data is the new oil” years back, but has his hunch or prophecy come to fruition in the times of what appears to be a veritable AI revolution? ​Looking at the issue closely, things don’t quite seem to be entirely that way. The strain that even the suggestion of an oil supply squeeze puts on the world economy almost makes this discussion moot, but the fact remains that fossil fuels induced climate change, and the geostrategic vulnerability that an oil-dependent world faces has made countries around the world, with the possible exception of Trump’s America, increasingly look at harnessing alternative sources of energy with dead seriousness. This ranges from wind and solar energy to geothermal power, nuclear energy, and hydrogen fuel. ​Even the fossil fuel-rich Gulf nations are aware that the oil bonanza won’t last forever and have been investing huge sums of money in diversifying away from this hitherto lucrative, but increasingly less favored, source of cheap energy. Given that the world is moving towards a diversified energy regime comprising a myriad of resources, with each nation figuring out its own energy mix that best suits its needs and does not encourage excessive dependency on imported sources of energy, the era of oil dominance will inevitably end in the years ahead. ​This may not happen as fast as many would like, but the process is inexorably on. We may never get rid of oil completely, as it is used in a very diverse range of industries, and not just as a primary source of energy. But it won’t be anywhere as important and indispensable as it is now as a primary source of energy in a few decades from now. ​So, what will replace it as the one resource that the entire world will love to have total control over? Many say it is data. Why is data important? ​Data is critically important in today's digital age because it allows you to optimally leverage the power of AI and Generative AI- technologies that promise to be the foundational cornerstone of the new age way of working and conducting a business or just about any form of organized activity. That is why a well-formulated data strategy is a necessary prerequisite for any business or organization that hopes to perform in an optimal fashion. Does that make data as important as oil, a commodity that nations have gone to war over? Given that data centres have been targeted in the ongoing Gulf war, it would seem that it is. Already, nations have moved to ensure that data pertaining to a country stays within their borders. This quest for data localization is driven by growing recognition of the fact that data sovereignty is a matter of national security. As a matter of fact, data is increasingly used by state and non-state actors to target competitors and rival nations by way of activities that range from digital espionage to using ransomware and malware to compromise and weaken their opponents. That vital infrastructure, like power grids, communication networks, and stock exchanges are all data-driven, lends them to be vulnerable to malicious acts of sabotage by inimical forces. There are many who believe that data as a resource is more valuable than oil in that not only is it not finite like the latter, but it also grows both in volume and value after being processed. Besides, it is a vital fuel (pun intended) for any country’s digital ecosystem. Data’s importance as an enabler of the modern 21st century economy is, in fact, more than that of oil. There are many who believe Data, one could already say, is right there at the top as a significant asset driving the modern economy. Its importance is not just on account of the fact that it plays a pivotal role in the adoption of AI, but also as an integral component of everything from production processes to logistics and online services. This makes data a crucial part of the value chain across industries. Data, one could already say ​Data as a resource has indeed come into its own. Rather than comparing it with oil, nations around would do well to chart out a data strategy that would help them secure their strategic self-interest in the best possible manner. Not doing so would cost them much more than a temporary oil shortage or a hike in its price would. Data is fast becoming more than the oil of our times. It is, in fact, already the lifeblood of our times.

Data: Is It Truly the New Oil?

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