The Continuum+: Planning, power and people

Planning, power and people

Cities are approaching a critical inflection point. Today, roughly 45% of the world’s population lives in urban areas, and the United Nations predicts that two thirds of global population growth through 2050 will occur in cities. At the same time, the physical footprint of urban areas is expanding nearly twice as fast as their populations. This pace of growth brings significant opportunities but also mounting risks, as infrastructure, public services, and governance struggle to keep up – creating gaps that businesses, investors, and policymakers can’t afford to ignore.

To navigate these challenges, cities must be understood as unified ecosystems, shaped by the convergence of sectors, skills, capital flows and regulatory frameworks. Those who understand these dynamics will be best placed to shape the cities of the future: vibrant, interconnected tapestries of modern life that pioneer change, champion inclusive growth and empower people to thrive.

Who pays for the city?

One of the most stubborn challenges is how cities pay for the infrastructure that underpins sustainable growth. Here, financing public assets is a central dilemma. Private capital flows readily into projects with predictable returns – telecom towers, data centres, district lighting – yet far less willingly into the power grids, transport networks and utilities on which those investments depend. These foundational systems rarely offer rapid or easily captured financial gains, even though they are essential to unlocking broader private-sector growth.

“Urban development is increasingly running ahead of the infrastructure it depends on,” says Marianne Toghill. “Without effective mechanisms to share risk and reward, particularly through public-private models, cities risk creating structural imbalances that ultimately constrain growth.”

This creates a free-rider problem. When the returns on public infrastructure are long-term and shared across society, investors have little incentive to shoulder the initial costs. In some regions, the weakening of public-private partnership models has further narrowed the channels for bridging this gap. The result is a widening asymmetry in urban development: private projects racing ahead while the public systems beneath them risk becoming chokepoints on urban expansion.

As that gap widens, traditional financing often struggles to cover these long-term, lower-return public assets, new sources of capital are stepping in to fill the gap. Private investment funds, private credit and institutional investors are increasingly moving into transport, energy and digital infrastructure projects that banks are less willing to hold on their balance sheets for decades. Private debt providers, once a niche corner of the market, now account for a growing share of infrastructure financing, reflecting a broader convergence of financial sectors. This shift is prompting a broader conversation about how existing oversight frameworks apply to a more diverse set of capital providers.

“Banks are regulated, so authorities have established frameworks if issues emerge,” explains Lucy Shurwood. “Private funds aren’t unregulated, but their structures and reporting obligations can vary significantly. As private capital becomes more embedded in public infrastructure, ensuring transparency and accountability keeps pace is increasingly important.”

But funding is only part of the equation. As private capital moves further into public infrastructure, projects are becoming more complex, placing new demands on how long-term public-private partnerships are structured and delivered.

“If we have more public-private partnerships, there will need to be a new skill set, or rather, a converged skill set, between those who are familiar with technology partnerships and those who are familiar with traditional bricks-and-mortar infrastructure projects,” says Raghav Ghai. “Twenty-year contracts now have to anticipate quite extreme technology change, and importantly, the generation of valuable intellectual property.”

Closing the urban infrastructure gap will require a more sophisticated approach to public-private collaboration. Projects will increasingly combine private innovation with public oversight, taking a holistic view of urban systems, from energy and transport to health and emergency preparedness. “We need to think globally, across data, ESG and risk management, and structure partnerships so both sides share responsibilities and liabilities,” explains Annabelle Bruyndonckx.

Health in the digital age

As city populations climb, demands on hospitals, clinics and specialist services are rising sharply. Even in well served urban centres, many systems are beginning to stretch, with longer waiting times and uneven access. Healthcare deserts are emerging in both urban peripheries and rural areas, where residents must travel long distances to reach basic medical services.

To relieve this pressure, cities are increasingly turning to digital health tools. Remote consultations, connected devices and AI assisted monitoring are allowing routine care to migrate out of physically congested clinics. The rise of virtual hospitals, where patients stay at home but are treated remotely, promises a way to manage demand without requiring physical proximity to facilities. “This is especially valuable where specialist shortages are acute, because it allows healthcare to be delivered more efficiently,” says Annabelle.

The rapid adoption of these technologies during the COVID-19 pandemic proved their viability. But the promise of telemedicine will only be realised if supported by secure data governance, interoperable digital infrastructure and integrated service design. Here, it raises complex legal and regulatory questions. “The first point is data: patients need to trust that their health information is properly protected,” says Annabelle. “Beyond that, clear rules are required to define what doctors can and cannot do remotely – when a physical examination is necessary, how teleconsultations are reimbursed and how liability is allocated.”

When access isn’t enough

Digital inclusion is increasingly the foundation on which future cities will be built. In the European Union, by 2025 94% of households had home internet access, up from around 80% a decade earlier, reflecting a steady and significant long-term increase. But access remains uneven: among people aged 16–74, only 56% had basic digital skills in 2023, meaning nearly half of EU residents lack the minimum digital literacy necessary to benefit fully from online services.

“The problem isn’t just providing devices,” argues Tommaso Tomaiuolo. “If children at well-funded schools get laptops while elderly people struggle to afford one, then you’re building inequality into the smart-city infrastructure itself.” Even in a highly connected EU, less than half of people aged 65–74 routinely use internet-connected devices, compared with 70.9% of adults overall, showing how digital access alone doesn’t guarantee inclusion.

Digital inclusion also varies widely across Asia. While cities like Singapore and Seoul report near-universal connectivity and high digital literacy, rural areas and older populations in some countries still struggle to access and effectively use digital services, creating stark gaps in who can benefit from the smart-city ecosystem.

Policymakers should take a dual approach to addressing the digital divide in cities. First, they must work with businesses to expand infrastructure through high-speed internet and public-access devices. Second, they should invest in digital literacy and lifelong learning, because access alone does not guarantee inclusion.

As Tommaso puts it: “Creating digital inclusion isn’t just about providing laptops or broadband. The real challenge is closing the digital skills gap in line with the EU Digital Decade 2030 targets, by engaging non-digital natives, supporting user adoption, and building the confidence to benefit from e-government and smart-city services. Without that human bridge and a commitment to lifelong learning, even the smartest city risks excluding its most vulnerable groups.”

The global race for the cognitive city

Cities around the world are competing to become the most intelligent, AI-driven urban environments, blending technology, infrastructure and governance to create the next generation of urban life.

One example is autonomous mobility. Much like San Francisco, in Dubai, self driving taxis are already being trialled on public roads, allowing passengers to hail rides through digital apps in designated areas. The service currently operates with safety attendants on board, with fully driverless operations expected within the next few years. Dubai aims for autonomous vehicles to account for a quarter of all journeys by 2030, reflecting the city’s ambition to integrate AI-driven transport at scale.

“Those with ambitions to be the most innovative start by asking ‘how do we make this happen?’ versus ‘how do we risk-assess this?’” observes [Lucy][19]. That attitude reflects the wider race to lead in AI, and it helps explain why some cities are moving faster than others.

Asia has always been a region with strong digital adoption. Across Asia, cities are rapidly deploying AI-driven solutions to transform urban life, with innovation accelerating even as regulatory approaches diverge. In Hong Kong, leading financial institutions are integrating AI across different use cases, from personalised customer engagement to crime detection, advanced risk management and employee upskilling. Meanwhile, in Shenzhen and other cities in Mainland China, AI is already powering next-generation transportation systems, including autonomous vehicles and smart mobility platforms that optimise traffic flows and enhance public safety. These examples highlight how Asian cities are not only embracing AI but are also setting new benchmarks for digital transformation, blending technological ambition with local governance priorities to shape the future of urban living.

“In Asia, we’re seeing a unique blend of bold innovation and pragmatic regulation,” says Kenneth Hui, “cities are moving fast, but always with an eye on what works for their people and their economies.”

At the organisational level, companies are increasingly analysing employee and customer data to improve security, streamline operations and tailor services. These efficiencies come with deeper questions about consent, transparency and the long term implications of building surveillance and automation into everyday life.

These developments illustrate why control over data is becoming a strategic priority. “In an AI era, a city that controls its data controls its destiny,” says Raza Rizvi. For municipal planners and investors, that difference between data ownership and dependency can determine who wins the race for urban competitiveness.

But even the most sophisticated systems are only as effective as the people who operate them. “Talent is the new urban currency. Without it, you can have the best infrastructure, but ultimately it's just empty hardware,” warns Raza. Cities that combine robust infrastructure with policies to nurture digital skills and AI literacy will be best positioned to convert technological opportunity into societal benefit.

The sustainability dilemma

These innovations are putting a huge strain on power infrastructure in cities. “The sustainability demands of data heavy assets are forcing a rethink across the real estate sector,” Moritz Vettermann observes. “For investors and occupiers alike, ESG is no longer a box ticking exercise, but a strategic framework that influences how assets are bought, financed, structured and future proofed, with the latter become more and more important.”

Because of this, ESG is increasingly becoming a strategic framework, rather than just a compliance label. To meet future energy needs sustainably, smart cities will rely on capital-intensive, long-term investments such as offshore wind, green hydrogen and carbon-neutral manufacturing. The success of these emerging industries hinges on coordinated regulation, stable financing and technological agility, and above all, a clear governance model that balances public benefit and private ambition.

Technology is also increasingly being used to make environmental impact personal and actionable. For example, in Trondheim, Norway and Uppsala, Sweden, apps have been created for residents to track their carbon footprints based on everyday spending, transport and services used. In return, they receive tailored suggestions for reducing their emissions.

The next generation city is here

For policymakers and business leaders, the path forward is clear. It’s time to move beyond viewing urban development as siloed investments – a wind farm here, a data centre there – and see it as a dynamic convergence of sectors, technologies and human ingenuity. Get this right, and the next generation of cities will be not just smarter, but fairer, greener and more adaptive to the needs of their communities.

Whether you're an investor, technology pioneer, healthcare innovator, property developer, or energy provider our experts are here to help you navigate the smart city ecosystem.