Here are the newest developments and emerging trends shaping the future of urban development.
You Should Know
- By 2035, India will host 7 of the world’s 30 largest megacities (10 million+ inhabitants). These include Delhi, Mumbai, Kolkata, Bengaluru, Chennai, Hyderabad, and Ahmedabad—with several surpassing 20–30 million residents.
- The U.S. Dept. of Energy announced a major restructuring that prioritizes fossil fuels and nuclear energy. New divisions for hydrocarbons, fusion, and geothermal energy were added. Offices that focused on renewables and energy efficiency were eliminated or renamed.
- Global renewable energy capacity reached a record 582 GW in 2024, with solar power accounting for 78% of that total, according to IRENA.
- Here’s a detailed map of service areas where Waymo offers its fully autonomous, public robotaxi service 24/7. Last week Waymo announced fully driverless testing in Miami, Dallas, Houston, San Antonio, and Orlando.
Worth Watching
- Why Japan doesn’t build major cities on its west coast.
- West Africa is the most justified spot for a new airport hub.
- The densest city in the world (Kowloon Walled City) had a strange secret.
Top Stories
Tired of the AI Data Center Boom? Get Ready for Quantum Computing Infrastructure Race
Tech giants and real estate developers are channeling enormous sums into data centers, raising concerns that the AI-driven investment boom could cool and trigger a correction. Yet another wave of capital may be forming. Quantum computing—an entirely different paradigm from today’s GPU-dense facilities—could reshape urban development on a massive scale.
Quantum funding is soaring, with startups raising more than $2 billion last year. A future “quantum advantage breakthrough” could unleash tens of billions of dollars in new investment within a few short years. Quantum computers rely on the physics of subatomic particles to solve problems classical machines cannot touch, but their hardware is extraordinarily sensitive to environmental conditions in ways traditional servers are not.
Most commercial quantum systems operate at 10–50 millikelvin, hundreds of times colder than deep space. Maintaining these temperatures requires massive dilution refrigerators, cryogenic plumbing, gas-handling racks, and high-capacity compressors—equipment that demands reinforced floors, large mechanical rooms, and significant vertical clearance. None of this fits into a conventional data-center rack.
Environmental “noise” poses another challenge. Even trace electromagnetic interference, weak magnetic fields, or minor vibrations can break qubit coherence. As a result, quantum facilities often require Faraday shielding, ultra-low-vibration slabs, isolated mechanical systems, and carefully routed cabling.
Quantum computing also demands complex spatial and power layouts, with separate zones for cryogenic systems, control electronics, and measurement hardware. Many facilities cluster near universities and national labs to access specialized talent and infrastructure, giving rise to a growing category of “quantum real estate” that resembles research campuses more than server farms.
Several U.S. regions are becoming early hubs, including Chicago, Boston, New Haven, parts of Colorado and Maryland, and Southern California.
Chicago stands out: PsiQuantum has chosen a former steel mill as the anchor of the new Illinois Quantum and Microelectronics Park. The multibillion-dollar project spans 440 acres and includes housing, retail, community amenities, and advanced quantum facilities. Backed by $700 million in state commitments so far, it is projected to create thousands of jobs on Chicago’s South Side.
Despite quantum’s infrastructure demands, analysts widely agree it will not make existing data centers obsolete. Instead, quantum and AI are expected to coexist, opening the door to hybrid technical and energy architectures where each reinforces the other’s capabilities.
Amtrak Sets Records. Will U.S. Passenger Rail Finally Be Profitable?
Amtrak closed Fiscal Year 2025 with record ridership and revenue, underscoring both the growing demand for passenger rail and the company’s push to modernize its national network.
Over the 12-month period, Amtrak carried 34.5 million customer trips — a 5.1% increase over FY24 and the highest total since the company’s founding in 1971. The FY2025 figure also marks a dramatic rebound from five years earlier, when the pandemic drove ridership down to roughly 16.8 million trips in FY2020. Operating revenue rose 9.1% to $3.9 billion.
New routes helped fuel the surge: the Mardi Gras Service between Mobile and New Orleans carried more than 18,000 riders in its first month and restored Gulf Coast service after nearly 20 years, while the Borealis service between Chicago and the Twin Cities drew nearly a quarter million riders. The launch of the NextGen Acela attracted more than 60,000 riders in its first month.
Despite these successes, Amtrak has never turned a positive operating profit — a challenge rooted in the structural constraints of the U.S. rail system. Although Amtrak operates 21,000 route miles, 72% lie on freight-owned tracks, requiring the company to pay access fees to companies like Union Pacific and CSX, while accepting delays when freight trains take priority.
Amtrak is the nation’s sole intercity passenger rail operator for a reason. Many of its long-distance routes, mandated by Congress as public-service obligations, are inherently unprofitable — ticket revenue simply cannot cover the high costs of operating and maintaining such expansive infrastructure. As a result, Congress must subsidize Amtrak’s operations every year.
Additionally, Amtrak does not run dense suburban networks, so commuter rail agencies (e.g., Caltrain, NJ Transit) fill that role.
Amtrak also bears responsibility for maintaining infrastructure that, in some cases, is more than a century old. Bridges, tunnels, and electrical systems dating back to the early 1900s require ongoing, multibillion-dollar upgrades that fare revenue alone cannot fund. These factors make true profitability difficult — even as ridership reaches modern records.
Still, Amtrak is investing heavily in its future. The company put a record $5.5 billion into capital projects in 2025, advancing major bridge, tunnel, station, and accessibility improvements nationwide. With adjusted operating earnings improving 15.1% year-over-year to ($598.4 million), Amtrak says it remains on track to achieve train operational profitability by FY28.
What’s Next for Detroit’s Most Iconic Skyscraper Complex?
The defining symbol of downtown Detroit is on the brink of major change as Bedrock and General Motors push ahead with a $1.6 billion redevelopment of the half-century-old Renaissance Center.
After GM announced in April that it would vacate the complex, speculation about a full demolition intensified; now, a partial teardown and sweeping redesign are officially on the table, marking a pivotal moment for the future of downtown Detroit.
Last week, Bedrock revealed that Detroit’s Downtown Development Authority (DDA) had committed $75 million to the project.
The proposal calls for demolishing two of the seven towers closest to the river and replacing them with new public spaces, plazas, and a pedestrian promenade that reconnects the site to the waterfront—an intentional move away from the fortress-like “city within a city” design that has defined the Renaissance Center since the 1970s.
Bedrock says the redevelopment will reactivate an underused site and create one of the nation’s most family-friendly waterfront districts, comparing the vision to Chicago’s Navy Pier and New York’s Chelsea Piers. Renderings show the remaining towers reimagined for housing, hospitality, and a revitalized hotel and conference center. The 727-foot Detroit Marriott, the city’s tallest tower, will remain but gain a new, more transparent podium extending toward the river. To the east, today’s sea of surface parking would be replaced by low-rise buildings and landscaped public areas.
The proposal has drawn significant criticism from preservationists, architects, and community advocates who argue that the Renaissance Center’s symbolic place on Detroit’s skyline deserves protection. Many object to demolishing buildings and adding more open space in a city already burdened with vacant land, while others highlight the embodied-carbon loss and the unrealized housing potential that full reuse of the complex could offer.
Detroit Mayor Mike Duggan and the city council have opposed landmarking the complex, allowing the redevelopment to proceed. GM, which once warned that full demolition was possible without substantial public funding, has since taken that option off the table.
Still, the project’s financing remains incomplete. The DDA’s contribution depends on renewing or expanding Michigan’s Transformational Brownfield Program, a state incentives fund that is nearly depleted.
The redevelopment also requires state legislative approval and final agreements before any construction begins. Bedrock expects design, engineering, and permitting to start only after those approvals, with visible construction likely beginning around 2027.
Cities Turn to Pods for the Homeless
Homelessness is a growing challenge in many urban areas, and a number of cities are turning to small, insulated pods as a quick, low-barrier way to give unhoused residents safer places to stay while long-term housing solutions lag behind.
These pods—compact, lockable structures designed for one or two people—offer basic protection, privacy, and access to support services, and can be deployed far faster than traditional shelters.
Lansing, Michigan, is among the newest cities to adopt this model. After purchasing 50 ModPods for $640,000, the city plans to invest another $750,000 annually in upkeep, bringing the first-year cost to nearly $1.4 million. Each roughly 8-by-8-foot unit includes up to two beds, limited storage, and hookups for heat, cooling, and electricity. City officials describe them as emergency shelters designed to reduce exposure to life-threatening winter conditions.
Burlington, Vermont, offers another example through the Elmwood Community Shelter, which has operated since 2023. The city assembled 30 pods in just 48 hours using federal American Rescue Plan Act funding. Each pod has insulation, air conditioning, shelving, and a locking door; five are large enough for two people. On-site counselors, health-care providers, and case managers help residents stabilize and work toward housing.
In Germany, the city of Ulm offers “Ulmer Nest” sleeping pods—wood-and-steel units designed as an emergency last resort for people who cannot or choose not to use traditional shelters. Equipped with solar panels, radio connectivity, and motion-sensor alerts for social workers, each pod fits up to two people and offers protection from cold, wind, and rain.
Yet concerns persist. Some residents question whether pod investments divert resources from long-term affordable housing, and advocates warn against allowing temporary structures to become de facto permanent solutions. NIMBYism also plays a role, as neighbors often oppose pod villages in their communities or public parks. City planners must weigh these tensions while ensuring that pod sites give residents access to food, health care, and transportation.
Across these cities, pod programs provide immediate safety, privacy, and support. But their limitations are clear: without substantial investment in affordable housing, pods risk becoming stopgaps stretched far beyond their intended purpose.
Big Deals
- Arada plans to acquire 80% of Thameside West, a $3.3B mixed-use development project in London.
- Constellation received a $1B loan from the U.S. Dept. of Energy for its Crane Clean Energy Center.
- Missouri resort and theme park secures $285M financing for $495M construction project.
- Highwoods acquires Legacy Union 6Hundred office building in Charlotte for $223M.
- Mori Trust pays $540M to acquire significant portion of 35 Hudson Yards.
- German e-mobility startup Pionix secures €8M seed round.
- Pearl Properties lands $173M for Philadelphia’s tallest apartment building.
- Gridware raises $55M to accelerate grid monitoring system deployment.
Extra Reads
- Brookfield launches $100B AI infrastructure program.
- How building affordable housing became the hottest game in L.A.
- Google is investing $40B in Texas AI data centers.
- Port Authority of NY and NJ proposes $45B plan to transform regional transportation.
- Seoul breaks ground on Yongsan International Business District megaproject.
- Istanbul transforms nearly 1 million homes to mitigate earthquake risks.
- UAE launches $6B gigascale renewable energy project.
- Korea partners with UAE on Stargate AI project.
- Europe pledges over €15B for clean energy for Africa.
- Skyscrapers are changing the capital of Slovakia beyond recognition.
- New York City reveals transformative vision for Staten Island’s waterfront development.