Forty-nine cities back accountability pact for resource-intensive data centers
On October 21, Reuters reported that the new C40 Global Urban Data Centres Pact had been endorsed by 49 cities, including 22 in the United States, to increase public accountability for data centers’ energy and water use.
Inside Practice · OCTOBER 23, 2026 · 1 MIN READ
On October 21, Reuters reported that the new C40 Global Urban Data Centres Pact had been endorsed by 49 cities, including 22 in the United States, to increase public accountability for data centers’ energy and water use. The initiative reflects growing municipal concern that data-center approvals can shift infrastructure and environmental costs to local communities even when national policy favors rapid AI expansion. Developers and customers should expect permitting, incentive agreements and sustainability representations to face more granular local scrutiny. Law firms can help clients avoid fragmented responses by linking site selection, utility contracting, community engagement and environmental reporting under a single governance process.