Reinventing cities: Driving urban resilience with digital innovation
- By Frederic Godemel
- 08 Oct 2025
- 4 min read
By 2050, the world’s population is expected to approach 10 billion, with 68% of people residing in urban areas. As cities expand, they encounter mounting challenges, from extreme weather events and climate change to outdated grids and inconsistent electricity access. To sustain this growth, cities require robust and future-ready infrastructure.
As technology advances, sectors like data centers and semiconductors are booming, but their substantial energy demands pose challenges. This growing pressure underscores the importance of grid reliability and the risks associated with energy disruptions, particularly for businesses dependent on uninterrupted power.
How do we balance rising energy demand with the need for technological and economic growth?
To prepare for the future, infrastructure must be resilient, scalable, and adaptable. The answer lies in electrification and digitalization, which at Schneider Electric we call ‘Electricity 4.0’. Integrating these solutions into urban systems enhances sustainability, optimizes resource use, and strengthens city resilience.
Electrification and digitalization are already transforming the built environment. The tools needed to decarbonize buildings—AI-powered building management systems, rooftop solar installations, heat pumps, and microgrids—are available today. What remains is broader adoption. These technologies not only reduce environmental impact but often deliver a fast return on investment, sometimes within just a few years.
And while constructing new energy-efficient buildings demonstrates significant potential, it’s equally important to retrofit existing ones. By 2050, half of the buildings standing today will still be in use, making retrofitting essential.
The Samwoh Corporation case
The Capgemini case
Energy-efficient solutions are shaping tomorrow’s cities, but buildings are only part of the equation.
- 4%of annual electricity consumption growth through 2027
- US$22.5Tneeded for grid improvements by 2050
- Microgridsprovide energy flexibility and resilience
Global electricity demand is expected to rise by 4% annually through 2027, presenting a significant challenge for power grids. Meeting this demand will require substantial investment, with the Energy Transitions Commission estimating US$22.5 trillion will be needed for grid improvements by 2050 to support a net-zero future.
Given the cost and scale of these upgrades, microgrids offer a practical alternative. These systems ensure reliable local energy, support electrification, and help optimize costs. They’re particularly beneficial for critical infrastructure, such as hospitals or buildings in areas prone to extreme weather. Microgrids can operate independently or connect to the main grid, providing the flexibility and resilience cities need to manage disruptions.
Advances in Battery Energy Storage System (BESS) technology have further enhanced microgrid performance, increasing their capacity, efficiency, and lifespan. As these technologies become more affordable, they not only lower energy costs but also facilitate the seamless integration of renewable energy sources.
The JFK International Airport case
The success of JFK’s Terminal One demonstrates the potential for other airports and critical facilities to adopt similar solutions. Incidents such as the Heathrow Airport outage in March 2025 and the widespread blackouts in Spain and Portugal the following month highlight the importance of microgrids in maintaining operations during disruptions.
Data is the cornerstone of Electricity 4.0. By making energy usage visible in real time, data enables cities to optimize resources, enhance sustainability, and improve overall efficiency.
With IoT devices, AI, and advanced analytics, cities can manage energy demand in smarter, more sustainable ways. These technologies enable predictive maintenance, extend the life of infrastructure, and provide real-time insights to guide decision-making. The result is not only enhanced operational efficiency but also faster responses to emergencies, minimizing downtime and bolstering public safety.
The foundation of these data-driven solutions lies in connected devices. Our EcoStruxure architecture’s connected products layer includes energy meters, smart panels, switchgear, and transformers. These tools keep urban operations running smoothly while generating the data necessary to drive energy-saving initiatives and automation. Automated processes help prevent equipment failures and improve efficiency, creating a more resilient energy landscape.
As cities evolve into interconnected ecosystems, cybersecurity becomes a critical concern. Each connected device and digital system introduces potential vulnerabilities. Without robust security measures, the risks of data breaches can have widespread consequences. That’s why it’s essential to integrate cybersecurity from the outset of smart infrastructure design. Proactive, resilient digital security strategies safeguard not only data but also the trust and well-being of entire communities.
Electrification and digitalization are catalysts for resilient smart cities, but innovation alone is not enough. Achieving sustainable urbanization requires collaboration between policymakers, businesses, and global organizations. Together, we can accelerate the adoption of digital tools, establish regulatory frameworks to support clean energy transitions, and invest in smart infrastructure solutions.
Cities are the economic backbone of nations and the foundation of our collective future. Ensuring they remain livable, vibrant, and resilient for generations to come requires decisive action and investment today..
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