One of the most perplexing questions facing urban and rural growth in the coming years is what to do about the seeming profileration of data centers and its consumption of vast quanties of electricity and water.
In an op-ed written in Politico with Melbourne Lord Mayor Nicholas Reece, Phoenix Mayor Kate Gallego unveiled “The Global Urban Data Centres Pact: A Mayoral Vision for a Sustainable, Affordable Digital Future,” an agreement concluded by the 42 members of the C40 Cities Group to address the need for data center regulation.
On the need for this pact, the C40 Mayors write:
“Recognising that data centres are an integral and growing part of our landscape, we, as mayors and responsible business leaders, are committed to working together to ensure that residents’ clear concerns about this sector, from energy costs to public health, serve as a catalyst for change. A unified, innovative vision can help the sector to enable community support and build urban data centres that are truly sustainable, equitable, and locally
beneficial.”
The Mayors adopted four pillars to move forward with implementing this pact regulating data center growth.
These are data centers must be:
- Strategically integrated into cities.
- Sustainable and resource-efficient.
- Accountable and community-focused.
- An engine for cost-security and shared prosperity.
Commenting on the C40 site on the data center agreement, Mayor Gallego offered:
“Data center demand is set to double the city’s grid load. To manage this growth, the city implemented a new zoning ordinance restricting facilities to industrial zones and mandated resource transparency. High-capacity projects must now prove utility availability and meet a 30 percent water recycling threshold if consumption exceeds 500,000 gallons daily.”
In the joint op-ed with Lord Mayor Reece, they say of the C40 agreement to regulate Data Center Growth:
“The principles are straightforward: data centers should not increase energy bills, strain water supplies or undermine climate targets. When planned well, they can support the transition to clean energy, create good local jobs, and strengthen urban infrastructure…
…We cannot afford to let this become a race to the bottom or to allow the fear of missing out on new technology result in data centers being waived through our planning processes. This is about setting expectations and shifting the direction of investment toward sustainability.
In Phoenix, that means putting guardrails in place early. The city has already implemented zoning rules that direct this infrastructure away from residential areas and into industrial areas, and define basic protections, including for fire safety. Growth is continuing, but it is being shaped to reflect the broader needs of the community…
…We are not anti-data center or anti-AI. These technologies will influence all parts of our lives in the years and decades to come. We just believe that they must be developed on terms that work for the cities and residents that host them, not imposed in ways that undermine climate goals or shift costs onto households. With the scale of investment flowing into this sector, and the creativity and entrepreneurial spirit that this industry brings to bear, there is a genuine opportunity to accelerate clean energy rather than lock in new fossil fuel demand…
…The companies building the infrastructure of the AI age now face a choice. They can repeat the mistakes of earlier tech booms by extracting resources, driving up energy demand, and leaving communities to absorb the costs, or they can help build a new model where digital growth strengthens cities.
The decisions made in cities around the world over the next few years will shape not only the future of AI, but the future liveability and sustainability of cities themselves. We’re calling on our fellow city leaders and those developing data centers to join us in this mission. Together, we can set a higher standard for decades to come.”
On social media, Mayor Gallego posted:
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