Cities launch global data centre pact as AI demand grows
24 June 2026
by Jonathan Andrews
More than 40 cities have launched a global initiative aimed at shaping how data centres are developed in urban areas as demand for AI infrastructure accelerates worldwide.
Announced during London Climate Action Week, the Global Urban Data Centres Pact brings together 41 cities across six continents, representing more than 90 million residents, to establish a shared framework for managing the growth of digital infrastructure. Founder signatories include Barcelona, Athens, Chicago, Seattle, Miami, Phoenix, Montreal and Melbourne.
The initiative comes as city leaders face pressure to accommodate expanding data centre investment while addressing concerns over energy consumption, water use, and land availability.
“The rapid development of data centres, cloud services, and AI infrastructure presents significant opportunities for innovation and economic growth,”said Haris Doukas, Mayor of Athens. “At the same time, it highlights the need for careful stewardship of energy, water, land, and critical urban infrastructure.”
According to the pact’s organisers, there are now more than 1,700 data centres operating across C40 cities, with more facilities coming online each month as AI adoption drives demand for computing capacity.
Rather than opposing new developments, the pact seeks to establish common expectations for how urban data centres are planned and operated. Participating cities are calling for facilities that are integrated into local planning strategies, use resources efficiently, engage with communities and deliver economic benefits to residents.
The framework is intended to give city governments a stronger role in shaping digital infrastructure investment while also providing greater certainty for developers and investors.
Kate Gallego, Mayor of Phoenix and Vice Chair of C40 Cities, said: “By bringing together cities from around the world, we’re creating a practical framework to support continued innovation while helping ensure this new infrastructure is developed in a way that strengthens communities and improves quality of life for all.”
Several cities have already begun taking a more active role in governance. In Seattle, city leaders recently approved a one-year data centre moratorium while officials assess impacts on electricity demand, water consumption, utility rates, land use and public health.
Nicholas Reece, Lord Mayor of Melbourne and Vice Chair of C40 Cities, said: “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.”
Image: Eimantas Buzas | Dreamstime.com
