As cities grow, they face an increasing number of challenges—from extreme weather and climate change to aging grids and uneven electrical availability. With the global population expected to reach approximately 10 billion by 2050, and a significant majority (68 percent) of that figure living in urban environments, there is more pressure than ever for cities to implement stable, future-ready infrastructure.
Combine this urban development with the expansion of sectors like the data center industry, and you can begin to see how the growing demand for electricity poses an immense challenge. As this demand grows, there emerges an urgent need for optimized grid reliability. With the increased risk of energy disruptions, there are considerable operational risks for businesses that require continuous power to operate.
These developments ultimately mean that we need infrastructure that’s resilient, scalable, and flexible. The key to this lies in electrification and digitalization, what we have termed Electricity 4.0. Integrating these technologies into urban infrastructure can bolster sustainability, optimize resources, and build resilience in today’s cities.
To see what electrification and digitalization look like in action, let’s start with buildings. The technologies we need to achieve decarbonization in buildings already exist today, from AI-augmented building management systems to rooftop solar panels, heat pumps, and microgrids. All that needs to happen now is wider adoption. In addition to reducing environmental impact, many of these technologies can generate payback within a short time—some in just 3-5 years.
Take Schneider Electric’s partnership with Samwoh Corporation in Singapore. By adopting an advanced building management system and connected products, Samwoh’s headquarters managed to generate up to 50 percent of savings in utility costs and return 25 percent of its solar-generated electricity back to the grid—setting a national benchmark for innovation and sustainability.
This example demonstrates the impact of constructing new buildings with digital energy solutions. But with 50 percent of buildings still standing in 2050, retrofitting existing buildings is just as important as building new, energy-efficient ones — and just as achievable. Last year, we partnered with Capgemini to launch an energy management platform that enables businesses to manage their energy performance across operations. The solution was deployed in Capgemini’s India operations, and it helped them achieve a 29 percent reduction in energy consumption in 2023 (versus 2019) across eight main campuses.
This is just a glimpse of how energy-efficient technologies available today are shaping the cities of tomorrow. But buildings are only one piece of the puzzle.
Global electricity demand is poised to grow by 4 percent each year through 2027. This surge poses a significant challenge for power grids and entails a huge financial cost. According to the Energy Transitions Commission, an estimated $22.5 trillion in global grid investment is needed by 2050 to achieve a net-zero transition.
Considering the cost and scale of grid upgrades, microgrids are an effective way to support electrification, ensure reliable local energy supply, and optimize electricity costs. This is particularly useful for critical facilities like hospitals or buildings in areas that frequently experience storms and other extreme weather. Designed to operate independently or connect to the main grid, they offer flexibility and reliability that cities need to stay resilient.
The latest advancements in battery energy storage system (BESS) technology have been transformative for microgrids, delivering greater capacity, efficiency, and longevity. Moreover, as these technologies become increasingly cost-effective, they not only reduce long-term energy costs but also enable the seamless integration of renewable energy sources.
A prime example of this shift is the new Terminal One microgrid at JFK International Airport. This helped transform the terminal into the first airport transit hub in the region that could function independently from the power grid, maintaining 100 percent of airport operations during power disruptions. The microgrid included rooftop solar and battery-energy storage, utilizing re-claimed heat to cool and heat water. It helped to reduce the airport’s greenhouse gas emissions by more than 38 percent, compared to the grid.
This demonstrates the potential for other major airports and facilities to follow suit. We saw the impact of the power outage that hit London’s Heathrow Airport in March 2025, and the major blackouts that hit Spain and Portugal just a month after. These incidents show the growing importance of solutions like microgrids that enable airports, buildings, and factories to stay up and running during disruption.
At the heart of these technologies—enabling them to operate efficiently and respond to real-time changes—is one essential element: data.
Data is the lifeblood of Electricity 4.0. When it flows throughout the energy landscape, it makes the invisible visible, helping us to see the energy usage in real time and optimize it.
With IoT, AI and advanced analytics, cities can meet the demand for energy in an efficient and sustainable way. How? By improving energy management, extending the lifespan of infrastructure through predictive maintenance and making smarter decisions in real time, based on data. These technologies not only enhance operational efficiency but also empower cities to respond swiftly to emergencies, reducing downtime and enhancing public safety.
The key to generating this precious data is digitally enabled devices. At Schneider Electric, we call this foundational level the “connected products” layer of our EcoStruxure architecture. This includes essential technology such as energy meters, smart panels, switchgear and transformers, which keep critical urban operations running smoothly. Once the data has been analyzed, insights can be used to support energy-saving initiatives. It can also enable automation to prevent equipment failures and improve efficiencies.
As cities evolve into smarter, more connected ecosystems, the need for robust cybersecurity becomes not just important, but essential. Every connected device and digital system creates a potential entry point for cyber threats. If these systems are not secured from the outset, the consequences of a data breach can be far-reaching and severe. To mitigate these risks, cybersecurity must be embedded into the design and development of smart infrastructure, rather than added as an afterthought. Proactive, resilient digital security strategies are key to protecting not just data, but the trust and well-being of entire communities.
Electrification and digitalization are more than just technological developments—they are driving forces for a more resilient urban future. However, sustainable urbanization demands more than just innovation. Policymakers, corporations and global organizations must work together to accelerate the adoption of digital tools. This must be supported by the development of regulatory frameworks that facilitate sustainable energy transitions and invest in smart infrastructure solutions.
Cities are driving forces behind economic growth, as well as the cornerstone of nations and the blueprint of our shared future. We must invest in them now to ensure they remain vibrant, resilient, and livable for future generations.