Reimaging Urban resilience: How digital innovation is shaping the cities of tomorrow

Frederic Godemel, EVP energy management, Schneider Electric looks into the future.

By 2050, nearly 10 billion people will be calling this planet home, with nearly 70% of those inhabiting urban environments. This growth in urban areas doesn’t come without its challenges - extreme weather, climate change, aging power grids, and unreliable electricity. To remain attractive to the future population , cities need to invest in infrastructure not only with today in mind, but this future demand too.

But it’s not just population growth that’s changing the face of urban environments. Data centres and semiconductors, which are the future of technology, are ushering in a new era of electricity demand. Not only are these industries new, they’re also highly dependent on electricity, putting fresh pressure on urban grid infrastructure. This not only highlights the need for grid reliability, but also increases the risk of energy disruptions—posing significant operational threats to businesses that depend on uninterrupted power.

So how can we ensure a future that is prosperous and where demand can be met? The answer sounds simple. Build reliable, resilient and scalable infrastructure. For us, at Schneider Electric, we’d characterise this as Electricity 4.0 – the powerful combination of digital and electric solutions. By embedding these solutions today, cities create a roadmap to success. Let’s explore how this can play out in reality.

Buildings – the cornerstone or urban transformation

To see the impact of Electricity 4.0, we needn’t look any further than buildings. A lot of the technology we need to make this transition happen already exists. We’ve got AI-augmented building management systems, rooftop solar panels, heat pumps and microgrids, which can all make a difference, but to date, the scale of deployment is too small. Cost is often cited as a barrier to development, but let’s not forget some of these technologies can offer a payback period of 3 to 5 years while also reducing environmental footprints.

I want to take you to Singapore for my first example. Samwoh Corporation has set the bar for national innovation and sustainability. By adopting advanced building management systems, the headquarters building managed to generate up to a 50% saving in utility costs. In addition, 25% of the solar generated at the site was sold back to the grid. It’s through partnerships like this that we can show what’s possible all around the world.

While Samwoh was a new build that was built with the future in mind, we can’t reach our goals through new construction alone. Retrofitting existing buildings is just as important. And crucially, just as doable. Moving a little further around Asia to India, and we find another example of building management making an impact. Here, Capgemini reduced energy consumption by 29% in 2023 compared to 2019 levels across eight main campuses. This was achieved through an energy management platform to enable businesses to manage their energy performance across operations. These are just two examples of how the world of tomorrow can be shaped by technology in buildings.

Adding layers to the urban infrastructure approach

While buildings are a great start to see what can be achieved, we can’t just look at cities of tomorrow as a collection of buildings in isolation. They’re interconnected and interdependent and so we need to look at the whole system to layer up our successes.

Let’s start with global electricity demand. It’s forecast to grow by 4% every year over the next few years. As electricity is more efficient than fossil fuels, this is a trend we’re pleased to see, but we can’t deny it adds pressure to the grid. In fact, research from the Energy Transitions Commission estimates US$22.5 trillion in global grid investment is needed by 2050 to achieve a net-zero transition.

Cost shouldn’t be a reason not to move forward, but the size and scale of the challenge can be intimidating. However, there is a workaround – microgrids. They offer an effective solution to ensure reliable, local electricity supply while optimising costs. This is particularly useful for critical infrastructure like hospitals where uninterrupted power supply is fundamental to operations. Microgrids operate independently from the main grid so are insulated from wider issues while offering flexibility and reliability to ensure cities stay resilient.

Microgrids are a powerful tool in our resiliency toolbox, but the improvements in recent years with battery storage technology have stepped them up a gear. Battery technology adds capacity, efficiency and longevity to existing microgrids. Beyond this, the developments within the storage space continue at pace. We’re now seeing batteries that are cheaper, have longer discharge times and greater capacity to further enhance their value to the grid and support new renewable capacity on the grid.

To find a great example of this set up in play, we’re travelling over to the new Terminal One at JFK International. This innovation transformed the terminal into the region’s first airport transit hub capable of operating independently from the main grid—maintaining 100% of airport operations during power disruptions. The microgrid combines rooftop solar and battery storage, and even uses reclaimed heat for water heating and cooling. The result: a reduction in greenhouse gas emissions by over 38% compared to the grid.

For those travelling into the UK recently, they could have been exposed to severe delays at Heathrow when a substation fire shut the airport. Had they followed the lead of JFK, the impact could have been better contained. It’s not the only event this year where grid infrastructure issues have led to disruption, with the Iberian blackout also highlighting how quickly events can interrupt daily life. As such, the modern day value of microgrids shouldn’t be overlooked.

Making the invisible visible with data

At the heart of all these solutions is one crucial component: data. With IoT, AI, and advanced analytics, cities can visualize energy usage in real time, optimize consumption, and extend the lifespan of infrastructure through predictive maintenance. These technologies not only boost operational efficiency, but also enables cities to respond rapidly to emergencies, reducing downtime and enhancing public safety.

To get this data you first need to make sure your devices are connected. For us, this is the ‘connected products’ layer of our EcoStruxure architecture. This includes energy meters, smart panels, switchgear, and transformers—technologies that keep critical urban operations running smoothly. Analyzing this data not only supports energy-saving initiatives, but also enables automation to prevent equipment failures and improve efficiency.

A collaborative path forward

Electrification and digitalization are more than technological trends—they are catalysts for a resilient urban future. But innovation alone isn’t enough. Policymakers, businesses, and global organizations must work together to accelerate the adoption of digital tools, create supportive regulatory frameworks, and invest in smart infrastructure.

Cities are the engines of our economies and the foundation of our future. To keep them vibrant, resilient, and liveable for generations to come, we must invest in their transformation today.