Publication Type

Journal Article

Version

publishedVersion

Publication Date

4-2025

Abstract

This paper critically assesses the complex interplay between urban transitions of digitisation and sustainability. Building on a mixed-method research design, we unpack the challenges of decarbonising digital infrastructure while attending to urban sustainability goals in a land- and water-scarce country facing significant physical climate risks. We identify transferrable lessons on the economic, technological, and environmental synergies and trade-offs behind data centre development and argue that stewarding the global data centre sector towards sustainability requires an ecosystem-wide approach. We identify implementation gaps across five key dimensions: technological innovation, policy and regulation, finance, infrastructure, and people. We find that the progress and uptake of sustainability initiatives are often impeded by risk-averse DC operators, who are most concerned with real and perceived risks of downtime. We conclude with recommendations for data centre stakeholders to align the low-carbon transition of the data centre sector with broader objectives of climate resilience, smart city development, and sustainable finance.

Keywords

Energy and society, environmental studies, finance, geography, information systems and information technology, science, technology and society, data centers

Discipline

Environmental Sciences | Finance and Financial Management

Research Areas

Integrative Research Areas

Areas of Excellence

Sustainability

Publication

npj Urban Sustainability

Volume

5

Issue

1

First Page

1

Last Page

11

ISSN

2661-8001

Identifier

10.1038/s42949-025-00203-1

Publisher

Nature Research

Copyright Owner and License

Authors

Additional URL

https://doi.org/10.1038/s42949-025-00203-1

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