Cities have always been engines of economic activity. Ancient trading cities grew around ports and marketplaces that connected merchants, goods and buyers. Industrial cities connected factories <a href="https://jordangazette.com/casagrand-accelerates-uae-expansion-with-plans-to-develop-over-6-million-sq-ft-in-dubai/”>with labor, transportation, energy and capital. Today’s global cities bring together businesses, institutions, investors and talent.
The ability to create connections has always been a major economic advantage.
But something new is being added to that equation. Digital infrastructure, data, artificial intelligence and connected systems are creating another layer across the physical city. Buildings, transportation, energy, businesses and people can increasingly share information and respond to changing conditions.
This raises an important question: What happens when the city itself begins to function as a platform?
From Smart City to Economic Platform
The concept of the “city as a platform” has existed for some time, often referring to open data, citizen-led innovation and new models of urban governance. [i]
But there is another way to think about the idea: through an economic lens.
Consider the smartphone
Its economic value goes far beyond the physical device. The platform allows thousands of companies to build products, services and businesses on top of it. Asian super apps take this further by connecting transportation, payments, shopping and other services within one ecosystem.
Cities have always enabled businesses to create value. The difference today is that digital infrastructure can connect more of the city’s physical and economic systems.
A traditional railway station, for example, creates economic activity around it. Offices, apartments, restaurants and stores emerge because people move through the area.
Now imagine the surrounding district with transportation data, digitally connected buildings, energy-management systems, mobility services and information about parking, occupancy and pedestrian movement. The physical infrastructure becomes part of a connected system.
This allows businesses to develop products and services using the available information and infrastructure. The shift is subtle but significant: urban infrastructure is moving from something businesses simply use toward something they can increasingly build upon.
When Connections Create More Value
The same principle applies across the urban economy. A building, transportation system or university creates value on its own, but connecting these assets can make each more valuable.
A university produces talent and research. Companies locate nearby. Startups and investment follow. Employees create demand for housing, restaurants and retail. More amenities attract more talent and companies.
Digital technology can accelerate this economic flywheel
AI can identify patterns and anticipate demand. Buildings and infrastructure can respond dynamically. Urban data and digital infrastructure can enable services that previously weren’t possible.
Smart-city technology, therefore, may be becoming more than a tool for making cities efficient. It can also provide the foundation for new economic activity.
From Smart Projects to Economic Ecosystems
Early examples are emerging at the district level, where physical and digital systems are easier to integrate. These districts can serve as laboratories for what could eventually happen at larger urban scales.
Expo City Dubai grew from infrastructure developed for Expo 2020 into a mixed-use smart urban district. More than 130 buildings were digitally connected through an Internet of Things (IoT) platform integrating building systems and providing data and analytics. A digital twin helps manage activity across the site.[ii]
Through its Urban Lab, Expo City provides a real-world environment where companies can test new technologies, bringing business, research and innovation together.
Singapore’s Punggol Digital District takes the concept further. The 50-hectare district brings together businesses, the Singapore Institute of Technology, government agencies and companies in AI, cybersecurity, robotics and fintech. It is expected to support approximately 28,000 jobs.[iii]
At its center is an Open Digital Platform that connects district systems and data, allowing businesses and researchers to develop and test solutions in the urban environment. A robotics company, for example, can connect its robots with the district’s lift systems, allowing them to move between floors without separate building integrations.
In 2026, Panasonic became the first partner to use Punggol’s Open Digital Platform to develop and test smart facility management solutions in the live district, demonstrating how shared urban infrastructure can support private-sector innovation. [iv]
The United States is experimenting with similar ideas. In Peachtree Corners, Georgia, Curiosity Lab operates as a 5G-enabled smart-city living laboratory. Its infrastructure allows companies and researchers to test autonomous mobility, IoT, robotics and other technologies within an actual community.[v]
Although different in scale and approach, these examples share an important principle: connected urban infrastructure can provide a foundation for businesses to innovate and create value.
What This Means for Business and Investment
For business leaders, investors and developers, this changes how urban value is viewed.
The value of a building or development will increasingly be influenced not only by the asset itself, but by the economic environment surrounding it and the opportunities those connections enable.
A highly connected district can benefit property owners through greater demand and appreciation, businesses through access to customers and talent, entrepreneurs through new markets, and cities through jobs and economic growth. Greater digital integration can also create opportunities for companies providing the AI, data systems, digital platforms and services that connect the physical environment.
The value created by these systems can therefore flow to different participants in different ways. That introduces an important distinction: creating value and capturing value are not necessarily the same thing.
As more of the city becomes connected, who ultimately captures that value—the property owner, developer, business, operator, technology provider, or some combination of them? As the digital layer becomes more important, it may reshape where value—and ultimately wealth—accrues within the urban economy.
The Next Economic Layer of the City
The economic power of cities has long come from connection. Digital technology is now changing the scale, speed and nature of those connections.
As smart cities evolve, their connected systems can support new forms of business activity and investment alongside improvements in how cities operate.
The result is a new economic layer in which connected urban systems can generate opportunities for businesses, investors and entrepreneurs.
[i] Anttiroiko, Ari-Veikko. “City-as-a-Platform: The Rise of Participatory Innovation Platforms in Finnish Cities.” Sustainability 8, no. 9 (2016): 922. https://doi.org/10.3390/su8090922.
[ii] Siemens AG. “Expo 2020 Dubai Opens as a Future City Blueprint Digitalized with Siemens Technology.” Siemens Press, October 5, 2021. https://press.siemens.com/middleeast/en/pressrelease/expo-2020-dubai-opens-future-city-blueprint-digitalized-siemens-technology.
[iii] JTC Corporation. “Open Digital Platform: The Digital Backbone of Punggol Digital District.” Punggol Digital District, n.d. Accessed August 17, 2026. https://www.jtc.gov.sg/punggoldigitaldistrict/story-articles/open-digital-platform-the-digital-backbone-of-pdd
[iv] JTC Corporation
“Panasonic First Partner to Develop and Test Smart Facility Management Solutions in JTC’s Punggol Digital District.” JTC, July 9, 2026.
[v] Curiosity Lab at Peachtree Corners. “Testing.” Curiosity Lab at Peachtree Corners, n.d. Accessed August 17, 2026. https://curiositylabptc.com/testing/
Aysha Turgut is an international speaker and strategic advisor. www.linkedin.com/ayshaturgut
