One of the most significant developments today is the rapid growth of data centers and other artificial intelligence-related infrastructure. This is true of Africa, too, where demand for digital services is accelerating. South Africa, in particular, has emerged as one of the continent’s leading destinations for data center investment because of its connectivity, market size, and strategic position within the regional economy.
For cities such as Tshwane, the administrative capital of South Africa, this presents a significant opportunity. Digital infrastructure has the potential to support innovation, attract investment, increase competitiveness, and create new opportunities, including jobs, across the economy. This is the reason so many cities around the world are clamoring for data centers. However, there is a reality that is often overlooked in the global conversation around AI infrastructure. Data centers may support the digital economy, but they rely on very physical infrastructure: electricity networks, water systems, roads, and municipal services.
Businesses invest where such infrastructure is reliable, industries expand where there is certainty, and jobs are created in cities that have the capacity to support economic activity. Not every city has this capability. Residents will rightly ask difficult questions if major AI infrastructure appears insulated from the pressures experienced in local communities. When the lights in your home flicker off but the data center down the road still glows bright, public trust is undermined.
Cities such as Tshwane understand the consequences of infrastructure constraints. African cities want to participate in the AI economy, but we cannot repeat a familiar pattern where infrastructure arrives first and cities scramble to manage the consequences later. Too often, decisions affecting African cities are shaped elsewhere, with local governments not consulted early on, despite bearing the responsibility for infrastructure and service delivery. The infrastructure powering AI will shape cities for decades, which is why municipal governments must have a say in how it develops.
This is what the Global Urban Data Centres Pact is trying to address. More than 40 cities, including London, Chicago, Mumbai, Nairobi, Rio de Janeiro, and Abidjan have signed the agreement that aims to make data centers sustainable and resource-efficient; respect local communities’ needs; deliver local economic benefits; and actively invest in local communities.
Launched during London Climate Action Week, the pact also ensures that cities in Africa and the rest of the developing world are present in the rooms where standards and expectations around data centers are determined.
Nearly 60% of the world’s population lives in cities, with the pace of urbanization expected to quicken. Many of the challenges confronting cities are increasingly global in nature, even as their impacts are often felt most acutely at the local level. Whether the issue is climate resilience, infrastructure investment, access to finance, or the rapid growth of digital technologies, cities must be active participants in shaping solutions rather than passive recipients of decisions taken elsewhere.
Economic growth requires infrastructure, yet no city has fully solved the challenge of balancing growth with the accompanying pressure on energy, land, and water. The data-center sector is moving quickly, and cities can move faster to address these challenges when they learn from one another.
A city in Africa may face different conditions to one in Europe or North America, but the underlying questions are the same: How do we support investment while protecting residents? How do we ensure communities benefit? How do we build workable partnerships with the industry before infrastructure conflicts emerge?
These are all important questions, and addressing them early on can help prevent the kind of conflict that is increasingly common across the world.
For Tshwane and other cities in the developing world, the conversation about data centers is ultimately one about economic growth. Investment follows reliable infrastructure, and sustainable growth depends on long-term planning. Digital infrastructure should therefore be integrated into a broader urban development agenda that supports investment, business confidence, innovation, and job creation. Companies want stable cities, predictable planning environments, and strong long-term partnerships with local governments. Better coordination benefits residents and strengthens investment certainty. Cities that plan properly are more attractive for long-term investment and can create the enabling environment required for industry, innovation, and sustainable economic growth.
The growth of AI-related infrastructure presents cities the challenge of balancing national economic priorities with local service-delivery obligations. Large-scale investment must be integrated into local planning in a manner that benefits both investors and residents. That way, cities can support economic growth by strengthening infrastructure resilience, improving service reliability, enhancing sustainability, and creating a more competitive environment for investment.
This approach is particularly important when considering the future of digital infrastructure. Data centers, AI-related investment, and other technology-driven industries depend on reliable infrastructure, regulatory certainty, and long-term planning.
Importantly, the opportunity extends beyond the construction of data centers themselves. Responsible digital infrastructure can support growth in software development, cybersecurity, tech services, maintenance industries, advanced manufacturing, and digital skills development. The objective is not only to host infrastructure but to also ensure that investment translates into meaningful economic participation and shared prosperity.
Successful cities will not be those that simply host infrastructure. They will be those that help shape how it is planned, governed, and integrated into urban life. Cities such as Tshwane should not merely be passive hosts for infrastructure designed around someone else’s priorities. The Global Urban Data Centres Pact can help ensure that cities in Africa, Asia, and Latin America are active partners in shaping the future of the digital economy.