Forty mayors representing major global cities—including London, Melbourne, and Phoenix—have collectively signed a pact designed to coordinate municipal response to data center expansion. The agreement reflects the concentration of computational infrastructure in large metropolitan areas and addresses growing strain on local systems.

The pact targets two critical infrastructure vulnerabilities: power grids and water supplies. By establishing coordination mechanisms across jurisdictions, the participating cities aim to mitigate the cumulative impact of data center proliferation on municipal utilities and water availability.

For the AI buildout, the agreement underscores an emerging constraint on expansion: local infrastructure capacity. As data centers consume increasing amounts of power and water to support AI training and inference workloads, municipal coordination becomes essential to manage competition between computational demand and residential and commercial needs. The pact signals that future data center siting and scaling will require alignment with local infrastructure limits.