Mayors of 41 cities from across Asia, Africa, Australia, Europe and the Americas, have come together to sign a pact establishing a framework for sustainable data center development in light of the growing demand for AI and cloud computing, and their impact on the expansion of data center capacity in urban areas. The Pact was revealed during London Climate Action Week.
Called The Global Urban Data Centres Pact, the initiative is designed to create a global benchmark for the industry, setting standards for environmental performance, equitable development, and community benefit while ensuring projects align with the needs of local residents. Participating mayors hail from cities including Athens, Barcelona, Boston, Chennai, Chicago, Copenhagen, Johannesburg, London, Melbourne, Milan, Mumbai, Oslo, Phoenix, Seattle, and Sydney among others.
“In the race to become smart cities, we don’t want to ruin the planet – that simply isn’t smart,” said Nicholas Reece, Lord Mayor of Melbourne and C40 Cities Vice Chair said in a press release. “In Melbourne, we believe cities should help shape the future of digital infrastructure instead of reacting to it. 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.
“Like many American cities, Phoenix has experienced first-hand the significant expansion of AI and digital economy infrastructure,” said Kate Gallego, Mayor of Phoenix and C40 Cities Vice Chair. “While data centres can power important advancements, rapid growth also brings important responsibilities. Residents expect local leaders to ensure development is planned carefully, infrastructure keeps pace, and surrounding communities share in the benefits.
Sadiq Khan, Mayor of London and C40 Co-Chair, said, “My ambition is for London to become the world’s leading city for environmentally friendly, low emission, high efficiency data centre development. AI and digital infrastructure will play a major role in the future prosperity of cities around the world, but residents are right to expect growth to be managed responsibly.”
The Pact is based upon four key development standards:
- Strategically integrating data centers into cities by prioritising brownfield regeneration and adaptive reuse. It also emphasizes respect for local communities by avoiding displacement, collaboration with local governments to minimise public health burdens (air quality, noise, temperature), and alignment with city planning and climate targets.
- Sustainable and resource-efficient operations that meet energy requirements but do not result in building, extending, or reopening fossil fuel facilities. Furthermore it eliminates on-site fossil fuel use by securing additional renewable energy and/or storage capacity to match demand. It also required data centers to minimize environmental impacts through leading emissions and water-efficiency practices, while capturing and using waste heat to support community benefits.
- Accountable and community-focused data center developments, including publishing measurable benchmark data on sustainability and public health metrics, engaging directly with the local community. It also requires delivering tangible local economic benefits by prioritising procurement from local businesses and supporting the creation of green jobs through investment in local programmes.
- Ensuring fair cost coverage through direct funding of essential infrastructure upgrades such as energy, water, and networks, fair-share pricing linked to sustainability performance, and reinvestment of surplus revenues into revolving funds that support local sustainability and social infrastructure.
Advocates of the framework say data centers developed under these standards can improve resource efficiency, expand access to affordable clean energy, support local economic development, and strengthen public services. The goal is to ensure that future data center growth supports climate objectives and community priorities while delivering the infrastructure needed to power the next generation of digital innovation.
Industry leaders and city officials have increasingly raised concerns that, without clear planning frameworks and consistent standards, data center development can place significant demands on local electricity grids and water resources while contributing to higher energy costs, increased urban heat, and air quality challenges.