The rise of AI and continued push of all software and applications onto the cloud, as well as the increasing use of IOT, connected devices and video has seen an explosion in demand for datacenter services and capacity. Furthermore, the energy required to power data center services is a current focus of the technology industry. For example, during the second half of 2024, Amazon, Microsoft and Google announced partnerships with or investments in emerging nuclear SMR (small modular) technology, as a potential source of carbon free energy to power data centers and the anticipated increased use of AI applications. Private equity firms have announced over $50B in investments into data centers and power projects to support the infrastructure demand anticipated by increased use of AI. As the focus is increasingly on carbon free energy technologies to support our cities and an increased use of AI applications and smart devices, this will require collaboration, licensing and partnerships among a diverse group of parties ranging from energy companies, digital platforms, governments, financial firms and other sources of capital, academic and research institutions, and industry participants to ensure that the maximum benefits from the use of technology are realized by cities and their citizens. A key component of this will be access to data through appropriate licensing strategies. Further, access to the significant levels of energy that will be needed to power applications is critical, as well as access and rights to use the data collected to drive meaningful outputs and greater efficiencies. How this data is generated, owned and licensed in an environment of ever- increasing smart devices monitoring and tracking people and the use of resources, overlaid with the wave of AI applications, will be a key determinant in the success of the development of smart cities. Thoughtful structuring of the collaborations, partnerships and licenses needed will help ensure successful realization of the “smart city.” One or more case studies providing examples will be discussed.
