ECIPE — European Centre for International Political Economy

A study by ECIPE

Cloud and AI Development Act (CADA)

The real-world economic impact of the Cloud and AI Development Act

Impact by country

Denmark

€2.6bn
10-year exposure, Medium scenario
€1.9bn
One-off migration cost, Medium
€57m/yr
Recurring price effect, Medium

Cost per person in the working-age labour force

Per economically active person (age 20–64), 10-year horizon

Measure Narrow Medium Broad
10-year total economic exposure €356 €905 €1,534
Effect on the real GDP level -€21 -€83 -€189

Annual recurring cloud-service price effects

€ million, 2025 expenditure base

Sector
Scenario Per year 5 years 10 years
Narrow €31m €154m €307m
Medium €57m €285m €571m
Broad €98m €490m €980m

Migration and systems-redesign costs

Present value of one-off transition costs, € billion

Sector
Narrow €679m
Medium €1.9bn
Broad €3.2bn

Ordinary public support

€ million, public sector

Narrow €0.7m
Medium €6.9m
Broad €22m

Transition scarcity costs

Present value, € million, public and private sectors combined

Narrow €0.5m
Medium €5.9m
Broad €22m

Downstream ICT-vendor exposure

Domestic vendors affected, and annual value added at risk

2
Narrow – vendor equivalents affected
6
Medium – vendor equivalents affected
14
Broad – vendor equivalents affected
€29m
Narrow – annual value added at risk
€116m
Medium – annual value added at risk
€264m
Broad – annual value added at risk

Combined delayed cloud and AI benefits

€ billion, forgone productivity gains

Narrow €4.3m
Medium €52m
Broad €166m