The Global Urban Data Centres Pact, which is being launched today at London Climate Action Week, aims to set standards and ensure that data centres use clean energy and all resources more efficiently. It also seeks to make these facilities more integrated into urban planning, as reported by Reuters.
Mayors from the likes of London, Mumbai, Melbourne and Nairobi, to name a few, have already signed up. Rules will be adapted to suit local conditions, but the framework is said to guide permitting and planning decisions and negotiations with companies and governments.
It comes as demand for compute surges amid interest in AI, with businesses investing billions and trillions into new sites worldwide. However, particularly in countries such as the US and the UK, public support for data centres is declining. Billion-dollar investments and new construction have led to public protests and calls for data centres to be less hungry for power and water, with many citing environmental and resource constraint concerns.
The US remains the largest global data centre market. In 2024, a report called Environmental Burden of United States Data Centers in the Artificial Intelligence Era confirmed that US data centres produced 105 million tonnes of CO2e within the past year (November 2023 – November 2024), with a carbon intensity 48% higher than the national average.
“As data centres grow rapidly in urban areas, the need for local governance that delivers sustainability and real benefits for residents has never been greater,” C40 Cities said via an online statement in support of the Global Urban Data Centres Pact. “[The pact] ensures cities can reap the economic benefits of this growing industry while safeguarding communities and the climate.”
C40 Cities added that the number of data centres globally has grown substantially – from around 500,000 in 2021 to roughly eight million today. Currently, the combined data centre and network ecosystem is responsible for 2.5% to 3.7% of global greenhouse gas emissions, C40 Cities explained, with the need to replace hardware so frequently, leaving behind significant e-waste.
As electricity consumption continues to boom, the new pact calls for gaps in policy to be closed to help protect local resources. The mayoral vision for data centres includes:
- Ensuring data centres are strategically integrated into cities, respecting local communities and aligning with city planning.
- Minimising the environmental footprint of data centres, making sure they are sustainable and resource efficient.
- Keeping the industry accountable and community-focused.
- Funding local infrastructure upgrades and reinvesting surplus revenue into the community.
“In the race to become smart cities, we don’t want to ruin the planet – that simply isn’t smart,” commented Nicholas Reece, Lord Mayor of Melbourne. “Local communities should be involved in decisions that affect them, which means growth must be matched by responsible planning, sustainable resource use and genuine community benefits.”
He added: “This is a big deal, and shows how cities can learn from one another, share practical solutions and help build a digital future that is innovative, sustainable and works for local communities.”
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