en.Wedoany.com Reported - During London Climate Action Week, 41 mayors from six continents signed the Global City Data Center Compact, setting clear conditions for the development of artificial intelligence and digital infrastructure. This framework, coordinated by the climate alliance C40 Cities, which comprises nearly 100 cities, aims to establish standards for local governments to collaboratively intervene in the expansion of the data center industry.
The founding signatories of the compact represent a total population of over 90 million, covering data center-dense markets such as London, Barcelona, Miami, Chicago, Phoenix, Melbourne, Rio de Janeiro, and Johannesburg. Approximately half of the participating mayors are from the United States, with European cities from Greece, Spain, Italy, Germany, the United Kingdom, and Norway, alongside signatory cities from Canada, Kenya, South Africa, Sierra Leone, Côte d'Ivoire, India, Australia, and Lebanon.
The compact does not require cities to close the door on the data center industry but changes the conditions for entry. C40 noted that mayors of Phoenix and Melbourne pushed for this initiative due to concerns over data centers consuming large amounts of electricity and water, as well as competing for land with residential developers. Cassie Sutherland, Managing Director of C40, stated that regions worldwide face similar challenges, and mayors want to collectively propose conditions for accepting data centers. C40's 50 member cities already host approximately 1,700 data center facilities, with development scale expected to grow by over 40%. This growth is driven by proximity, as AI systems require near-instantaneous response times, and data centers tend to cluster to form metropolitan ecosystems. According to Capacity, in 2025 alone, the total value of data center projects delayed or canceled due to local opposition is estimated at $156 billion.
The situation in Melbourne is representative. If all current plans proceed, local data centers would consume up to 20 billion liters of water annually, accounting for about 4% of the drinking water supply, while the city is already grappling with population growth and prolonged droughts caused by climate change. Melbourne Mayor Nicholas Reece made it clear that he does not want to see a race to the bottom among cities but rather hopes to establish a better framework to achieve a win-win outcome for data center investments.
The compact is based on four pillars: In terms of siting, it prioritizes brownfield redevelopment and adaptive reuse, avoids displacing existing communities, and coordinates the reduction of impacts on public health, including air quality, noise, and temperature; regarding energy, it commits to not building new fossil fuel capacity, not restarting or extending the life of existing plants, and ensuring that new renewable energy generation or storage is at least equivalent to total electricity demand; concerning water use, it adopts efficient technologies, explicitly moves away from reliance on drinking water sources, requires "fair cost coverage" where data centers directly fund upgrades to energy, water, and network infrastructure, and implements "fair share pricing" linked to sustainable performance, with surpluses directed to local sustainable development funds; operators must publish measurable baseline data on sustainability and public health indicators, engage with local communities, and prioritize procurement from local businesses and support employment.
Some cities have already taken action. In July 2025, Phoenix updated its zoning regulations, requiring data centers to obtain special permits and adding reviews related to power reliability, noise, and emergency access. Seattle, meanwhile, enacted a one-year moratorium on data centers to analyze their impact on the power grid, water consumption, utility rates, land use, and public health. Phoenix Mayor Kate Gallego emphasized that residents expect local leaders to ensure careful planning of development, that infrastructure keeps pace, and that benefits are shared.
No Southeast Asian cities signed the compact, despite the region accounting for a quarter of global energy demand growth. The region hosts over 2,000 data centers in Indonesia, Malaysia, Singapore, Thailand, Vietnam, and the Philippines, with the International Energy Agency (IEA) projecting its energy demand will more than double within five years. Some cities cited national policies or other factors as reasons for not signing, but dialogue continues. C40 stated that the compact's vision needs to be translated into regulations or guidelines for each city and requires buy-in from government officials, utility companies, and the private sector. Start Campus CEO Robert Dunn noted that by 2026, sustainable data center development has shifted from marketing to engineering-led solutions, including liquid cooling, waste heat recovery, and zero-water cooling technologies. The World Green Building Council welcomed the compact, pointing out that data centers are not just buildings but long-term consumers of critical urban resources, and that energy systems, water supplies, and communities will be affected for decades to come.
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