The mayors of Melbourne and Phoenix have gathered together with ten other mayors to begin an initiative to harness the opportunities and address the environmental impact of data centres and AI infrastructure in cities.
The Lord Mayor of Melbourne, Nicholas Reece, and the Mayor of Phoenix, Kate Gallego, brought together mayors other cities at the C40 World Mayors Summit in Rio.
Whilst recognising data centres as an important economic driver, mayors from Athens, Barcelona, Dubai, Hobart, Johannesburg, Milan, Melbourne, Paris, Phoenix and Portland believe this must not be at the cost of increased carbon emissions, air pollution, water scarcity and local consumer energy prices.
Many of the world’s data centres are located in cities – at least 1,700 in the 97 C40 cities alone – and this number is set to grow significantly.
As the decision-makers for land use in their cities, mayors have a critical say in where these data centres are built, how they operate, and how they are powered.
That is why mayors of some of the world’s biggest cities joined Melbourne and Phoenix to address the environmental and community impact of data centres and related energy infrastructure and transmission.
Going forward, they commit to work together to build global city support around four principles:
Empowering local leaders – Equipping mayors and other local leaders with the knowledge and skills to plan responsibly for data centres and AI-infrastructure, including around the transparency of data and information
Advancing environmental and social standards – developing shared guidelines and standards for low-carbon and water efficient infrastructure and investments in local communities
Putting sustainable growth and local prosperity at the heart of data centre planning – ensuring decisions on planning serve and benefit local people and the environment, as well as business
Enabling dialogue between data centre investors, companies, experts and local communities – ensuring that local people, local government, business, developers and other stakeholders are engaged in decision making in a transparent and accountable way
In taking forward this urgent work on data centres, the mayors invite other cities to join the initiative and share their experience and expertise. They also stressed their intention to work with the data centre and AI infrastructure companies in shaping the sustainable growth of the sector.
Data centres are critical components of the digital economy and support high-value sectors such as financial services. They are an important source of foreign investment, and have the potential to create highly-skilled jobs and contribute to the more effective delivery of city services.
This new initiative is determined to maximise the opportunities presented by data centres, whilst also serving local communities, tackling climate change and protecting the environment.
Mayor of Phoenix, Kate Gallego, said that AI and advanced computation have transformational potential, but communities need basic standards and transparency to ensure the infrastructure that supports them is developed in a way that benefits local residents.
“With the incredible creativity and capital behind these industries, we have the opportunity to drive clean energy development and job creation. Mayors stand ready to collaborate to deliver positive outcomes for our communities and our world,” Gallego said.
Lord Mayor of Melbourne, Nicholas Reece, said that cities are at the centre of this major technological transformation.
“They host, regulate, enable, and increasingly rely on AI to improve public service delivery, support innovation, and enhance wellbeing,” Reece said.
“We welcome the investment and positive benefits that come with AI and data centres. We also recognise the urgent need to better manage the environmental consequences of these new technologies.
“In Melbourne we expect to see data centres and AI infrastructure account for 20 per cent of energy consumption by 2040, it is a similar story for other cities.
“If these massive new energy consumers are not using renewable power, then we are not going to meet our climate targets.
“In our efforts to be smart cities we don’t want to cook the planet. That would be ironic, and a tragedy.
“Thankfully there is a pathway forward that is both smart and sustainable. New data centres need to use renewable power and have sustainable water management plans.
“This initiative asks the world’s cities and technology companies to build a common framework that promotes energy systems, water use, and supply chains that align with the goals of the Paris Agreement and net-zero emissions pathways.”
