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40 mayors worldwide endorse a pact to shape data center development

The pact seeks clean energy use and tighter planning as AI-driven data centre demand strains grids, water supplies and communities, Reuters said.

  • On Tuesday, mayors from 40 cities, including London, Phoenix, and Melbourne, launched The Global Urban Data Centres Pact at London Climate Action Week to curb strain on electricity grids and water supplies.
  • Melbourne Lord Mayor Nicholas Reece warned that investment is occurring at "breakneck speed," leaving cities at risk of a "race to the bottom" as governments compete for investment by bypassing environmental scrutiny.
  • Phoenix Mayor Kate Gallego reported 225 existing or planned data centers, while Melbourne anticipates consuming 20 billion liters of water annually for a city of 5.5 million people.
  • Coordinated by C40 Cities, the pact provides a framework to guide permitting and planning decisions, ensuring developers use renewable energy and build on underutilized land.
  • As AI-related computing needs drive global investment, data centers are projected to account for 10% of local power demand by 2030 and 20% by 2040 across Asia-Pacific and other regions.
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Reuters broke the news in New York, United States on Monday, June 22, 2026.
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