Forty global mayors, including leaders from London, Phoenix, and Melbourne, are launching the Global Urban Data Centres Pact at London Climate Action Week to regulate the environmental impact of expanding data center infrastructure. The pact aims to standardize clean energy use and resource efficiency as AI-driven computing demand strains local power grids and water supplies.
How are data centers impacting city resources?
Data centers are placing unprecedented pressure on municipal infrastructure, specifically regarding electricity and water. In Melbourne, Lord Mayor Nicholas Reece reported that approximately 50 major data centers currently operate in the city. He projected these facilities will account for 10% of local power demand by 2030 and up to 20% by 2040.
The water consumption in Melbourne is equally significant. Mr. Reece stated that these centers could use roughly 20 billion liters of water annually, representing 4% of the city’s total drinking supply.
Phoenix faces a different scale of electrical strain. Mayor Kate Gallego noted that the city and its surrounding region have 225 existing or planned data centers. She warned that these new proposals could potentially double the city’s current electricity demand.
According to the World Economic Forum, data centers account for an estimated 2.5% to 3.7% of global greenhouse gas emissions. This figure is higher than the total emissions produced by the aviation industry.
Why is the demand for computing power surging?
The rapid expansion is driven by a global surge in demand for computing power, primarily linked to the rise of artificial intelligence. This demand has triggered trillions of dollars in investment for new sites worldwide.
This investment is occurring at what Mr. Reece described as “breakneck speed.” He noted that while the rollout of air conditioning took decades to impact the energy grid, the data center expansion is happening in just a few years. This speed often outpaces the ability of local governments to implement effective regulations.
Mayor Gallego described the electricity demand in the Phoenix region as “unprecedented.” The rapid growth has led to disputes over land use, noise levels, and potential safety risks associated with large-scale battery storage.
What is the Global Urban Data Centres Pact?
The Global Urban Data Centres Pact is a framework designed to guide permitting and planning decisions. Coordinated by C40 Cities—a network of nearly 100 major cities working on climate action—the pact seeks to set standards for how these facilities integrate into urban environments.
While the pact provides a global framework, rules will be adapted to local requirements. For example, cooling standards in Iceland will differ from those required in Manila. The goal is to ensure facilities use clean energy and manage resources more efficiently.
Signatories to the pact include cities such as Barcelona, Chennai, and Boise. London Mayor Sadiq Khan stated that while digital infrastructure is vital for future prosperity, residents expect this growth to be managed responsibly.
As cities compete to attract tech investment, they face a “race to the bottom” risk. This occurs when governments bypass environmental scrutiny to secure data center developments.
Frequently Asked Questions
What is the main goal of the Global Urban Data Centres Pact?
The pact aims to set standards for clean energy use, resource efficiency, and better integration of data centers into urban planning to reduce their strain on local grids and water supplies.
How much electricity do data centers consume?
Consumption varies by location. In Phoenix, existing and planned data centers could potentially double the region’s electricity demand, according to Mayor Kate Gallego.
Do data centers impact drinking water?
Yes. In Melbourne, data centers are projected to use about 20 billion liters of water per year, which is 4% of the city’s drinking supply, according to Lord Mayor Nicholas Reece.
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