Singapore Joins Global City Pact to Promote Sustainable Data Centre Growth

Singapore has joined a coalition of 40 cities worldwide that are working to address the growing environmental impact of data centres on electricity grids, water resources and urban infrastructure. The initiative, known as the Global Urban Data Centres Pact, is being launched during London Climate Action Week and aims to establish principles for the sustainable development of digital infrastructure.

The pact brings together cities including London, Melbourne, Phoenix, Barcelona and Chennai to develop common approaches for managing the rapid expansion of data centres driven by artificial intelligence and cloud computing. Participating cities will collaborate on standards covering clean energy use, resource efficiency and integration of data centres into urban planning processes.

Singapore has already emerged as a leading example of sustainable data centre governance. Through strict energy-efficiency requirements and careful planning of new facilities, the city-state has sought to balance digital infrastructure growth with its limited land, energy and water resources. The new pact is expected to strengthen knowledge sharing among cities facing similar challenges.

City leaders involved in the initiative have warned that the rapid growth of AI-related infrastructure is placing unprecedented pressure on local utilities. Melbourne estimates that data centres could account for up to 20% of the city's electricity demand by 2040, while other cities have raised concerns about water consumption, land use and grid capacity.

The agreement is coordinated by the C40 Cities network and seeks to ensure that digital infrastructure expansion supports climate and sustainability goals. By promoting efficient energy use, responsible water management and cleaner power sources, participating cities aim to prevent the growth of data centres from undermining urban sustainability efforts while supporting the digital economy.

City-level data-centre pacts formalise sustainability expectations for hyperscalers globally, and they shape siting, cooling and energy-sourcing decisions well before formal rules land. Our data-and-digital and climate-action teams help data-centre operators and downstream customers evaluate what these pacts mean for capex, disclosure and long-term contracting.