Data Centers

AI and cloud computing are driving unprecedented growth in data center development, placing mayors at the center of a rapidly evolving landscape. Data center power demand is projected to more than double—from approximately 40 GW in 2026 to 106 GW by 2035. For cities, this growth represents both an economic opportunity and a complex challenge: how to attract investment while protecting affordability, sustainability, and quality of life.

As the level of government closest to residents, mayors have the trust, authority, and influence to shape how and where data centers are built. While many communities feel powerless in the face of large corporate investments, cities have important tools to guide development outcomes. This is why in 2026, Climate Mayors launched Data Centers and the Climate Landscape: An Actionable Resource for US Mayors.

Data centers are not one-size-fits-all. Different types of facilities have distinct impacts on electricity demand, cooling needs, land use, and community resources. Resources like Climate Mayors’ Data Center Guide helps mayors understand available policy levers—even when authority is shared with states, utilities, or regional entities—and use them to set clear expectations for responsible growth. From community benefits agreements and workforce requirements to stronger planning processes, cities can ensure data center development delivers local value while advancing goals around decarbonization, grid resilience, water stewardship, and energy affordability.