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Rest of World
Data centers should benefit the cities that power them
The rapid expansion of data centers fueled by AI infrastructure growth presents a unique opportunity for cities, especially in Africa. Tshwane, South Africa, stands at the forefront of this trend, needing to leverage its growing data center investments to stimulate local economic development. However, it is crucial to ensure that such infrastructure development does not happen in isolation from community needs, as neglecting local infrastructure can erode public trust and exacerbate existing challenges. The Global Urban Data Centres Pact aims to foster collaboration between cities and the industry to create sustainable and resource-efficient data centers that integrate local community needs, thereby generating jobs and enhancing competitiveness.
Act nowConfidence: HighShort term horizon
Published 8 Jul 2026, 10:40 UTC5 min read
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Summary
TL;DR
- Data centers in Africa are experiencing robust growth.
- Urban planning must integrate infrastructure development with local needs.
- The Global Urban Data Centres Pact includes over 40 cities.
- Reliable infrastructure is crucial for economic growth.
- Cities must balance investment with sustainable development.
Interesting facts
- Nearly 60% of the world's population lives in urban areas.
- Africa is emerging as a key destination for data center investments.
- The Global Urban Data Centres Pact was launched during London Climate Action Week.