40 City Mayors Back Global Pact to Curb Data Centre Strain on Power, Water and Communities

Led by London and coordinated by C40 Cities, mayors from 40 major global cities including Phoenix and Melbourne will launch the Global Urban Data Centres Pact during London Climate Action Week to regulate the booming AI-driven data centre expansion that has outpaced existing urban governance rules. The new framework guides city-level planning, permitting and negotiations with tech firms and national governments, tailors resource-efficiency and clean-energy standards to local conditions, and addresses mounting strains on power grids, water supplies, land and residential communities. Melbourne projects local data centres will consume 20% of city power and 20 billion litres of water annually by 2040, while Phoenix faces an unprecedented electricity demand surge that could double due to new data centre proposals, bringing growing concerns over noise, battery safety and residential-area construction risks. As data centres account for 2.5%–3.7% of global greenhouse gas emissions, exceeding aviation output, the pact emphasizes responsible growth rather than halting expansion, requiring operators and investors to prioritize community consent, early local engagement and robust environmental due diligence. It marks a shift where data centre development is no longer purely a tech policy issue but a core urban governance matter judged by grid impact, water consumption, public acceptance and climate compliance, forcing companies to move beyond formal permitting procedures to mitigate operational delays, cost hikes and reputational risks amid fierce inter-city competition for tech investment.

Sources: https://esgnews.com/40-city-mayors-back-global-pact-to-curb-data-centre-strain-on-power-water-and-communities/