AI may feel like software, but behind every AI service are enormous buildings packed with computers. In 2026, cities are increasingly dealing with the physical consequences.
1. More Than 1,700 Are Already in Major Cities
More than 1,700 data centers are already operating across cities that belong to the C40 Cities Climate Leadership Group, a network of nearly 100 major cities working together on climate and urban challenges. More facilities are being built each month.
2. They Can Use as Much Electricity as a Small City
A modern data center can consume as much electricity as 100,000 homes, putting new pressure on local power systems.
3. Phoenix Has a Huge Power Problem
Phoenix has become a major data-center market, but proposed projects could dramatically increase electricity demand. City officials are now looking at how much additional infrastructure the developments would require.
4. Water Is Becoming Part of the Debate
Servers generate enormous amounts of heat, and many facilities rely on water-based cooling.
That has become particularly controversial in cities already dealing with water shortages or drought.
5. Melbourne Is Preparing for a Massive Increase
Melbourne officials estimate data centers could eventually consume up to 20% of the city’s electricity and 4% of its drinking water by 2040.
6. Mayors Are Now Writing Rules for AI Infrastructure
In June, 40 mayors from cities around the world backed a new pact calling for data centers to be planned around electricity, water, land use, and community needs.
The unusual part is that cities aren’t debating whether AI will change the world anymore. They’re figuring out how to fit the machines behind it into neighbourhoods that already exist.