Advertisement proptech week mena
Advertisement proptech week mena
Community Management   |   IFM   |   Property Management   |   PropTech   |   Real Estate
 
 

AI and IoT: The Driving Force of Energy Efficiency in Smart Cities

 

Smart city technology can enhance energy efficiency through different solutions that leverage IoT and AI, including Digital Twins and Microgrids and Facilities Management (FM) technology

 
April 20, 2022 Property Management
 

AI and IoT: The Driving Force of Energy Efficiency in Smart Cities
 

There is no question that the rapid development of the Internet of Things (IoT) is transforming several aspects of our daily life. Recently, Fortune Business Insights report, titled ‘Internet of Things (IoT) Market, 2020-2027’ stated that the global IoT market size is projected to reach USD 1463.19 billion by 2027 while exhibiting a CAGR of 24.9% during the forecast period. As quality of life and resource management climbs to the top of the list for governments and policymakers around the world, smart cities in specific are becoming a key area whose success in achieving energy efficiency and overall wellbeing targets largely depends on leveraging IoT and AI.

Technology can transform smart cities in many ways. A recent report by McKinsey Global Institute showed that quality of life including safety, jobs, cost of living and health can be enhanced by anywhere between 10% and 30% with the use of smart city technology. When it comes to residential complexes and commercial spaces, technology can aid maintenance and smooth functioning of many aspects including security, managing footfall and energy efficiency. In addition, the use of AI and IoT is not only limited to the operation of buildings but can be leveraged in pre-construction stages. For example, drones, which are witnessing further development due to AI technology, can reach areas difficult for humans to reach and produce quicker and more accurate results. In addition, Building Information Modelling (BIM) tools and digital twins can create a model of the planned construction to enable coordination of the project before execution, resulting in great efficiency.  

Here we look at the ways in which smart city technology can enhance energy efficiency through different technologies that leverage IoT and AI including Digital Twins and Microgrids and Facilities Management (FM) technology. 

Smart grids

One of the major features of smart cities is the analysis and use of data that can be collected by IoT devices and sensors. These data can be used to improve infrastructure, public utilities and services, which are necessary to achieve energy efficiency targets. A new generation of low carbon microgrids, leveraging IoT technology, is transforming the design of densely populated cities and helping to operate utility systems to encourage energy efficiency. Through the Internet of Things (IoT), organizations can cost-effectively implement microgrids. Smart grids allow predictive maintenance and are and can create smaller groups from larger electrical utility grids, which provides organizations with greater control of how to optimize their energy supply. In addition, microgrids can also reduce dependency on utilities by helping cost reduction through avoiding peak usage charges. As such, smart grids are believed to have the potential to revolutionize the distribution of electricity worldwide. 

Digital Twins

By means of receiving input from sensors, digital twin technology can enable urban planners to test projects and developments before implementation in the real world through real-time data.  The sensors gather the data from the physical product and simulates the object in real time, providing valuable insights into performance and potential problems.

This can undoubtedly contribute to smarter and more sustainable cities. A great example is the Singapore government creating a digital copy of the city for policymakers to explore future scenarios. This will allow future changes to the city to be simulated before they are carried out. However, it also allows for other simulations such as vehicle usage and emissions. Digital twins can provide replicas of cities with a virtual model of roads, building and public spaces, it can help city planners better plan transportation systems and warn inhabitants about pollution levels and other suspected problems. 

Tech-driven FM:

Infrastructure plays a key role in global energy consumption as buildings produce 36% of all carbon emissions globally. IoT and AI continue to shape the landscape of tech-driven benefits in FM, which enables Facilities Managers to reduce inefficiencies and greenhouse gas emissions. For example, automation built sensing technology deployed through a building management system can adjust temperature and light according to usage patterns and presence of people in the rooms. The selective use of energy enables more efficient use of energy and cost saving. In addition, one of the technologies that facilities managers can implement is the use of Radio-frequency identification (RFID), which allows for real time monitoring of people entering and leaving a building, a smart way to initiate a no carbon footprint.

As more attention has been dedicated to the great contribution of cities to greenhouse gas emissions, many cities around the world are working towards leveraging smart city technologies. In addition, the prioritisation of wellbeing in recent years is furthering this move towards efficient and smart technology. Despite the challenges that come with rapid technological developments, cities should continue to explore how to use smart city technologies to make their communities smarter, safer and more efficient.

This article is written by Professor Tadhg O'Donovan, Deputy Vice Principal, Academic Leadership, and Head of School of Engineering & Physical Sciences at Heriot-Watt University in Dubai.

MORE FROM BUILT ENVIRONMENT

How MRI Software Is Turning Smart Building Data into Real Value: Insights from The Hub by Built Environment ME
How MRI Software Is Turning Smart Building Data into Real Value: Insights from The Hub by Built Environment ME

In this episode of The Hub, MRI Software’s James Massey explains how IoT, AI, and robust data strategies are transforming the way modern buildings operate.

July 7, 2025 UAE PropTech
Leveraging Technology for Safer, Smarter, and More Sustainable Facilities
Leveraging Technology for Safer, Smarter, and More Sustainable Facilities

Graham Easton leads ENGIE Solutions IFM GCC at the forefront of data-driven facility management, championing the company’s Smart O&M platform to revolutionize operations across the region

July 4, 2025 UAE IFM
Security and surveillance in the built environment
Security and surveillance in the built environment

Axis Communications on Network Video Cameras from deployment to decommission

February 2, 2023 UAE PropTech
Visibility into Building Operations is anything but straightforward, here’s why
Visibility into Building Operations is anything but straightforward, here’s why

With constantly evolving tenant expectations, property teams need a future-ready framework to accommodate the changes in the way their buildings operate.

February 1, 2023 UAE Property Management
Smart buildings: What happens to our free will?
Smart buildings: What happens to our free will?

What will become of our free will when choices are made for us by technology embedded in the building?

January 21, 2023 Canada PropTech
UAE President Sheikh Mohamed bin Zayed Al Nahyan Announces 2023 as ‘Year of Sustainability'
UAE President Sheikh Mohamed bin Zayed Al Nahyan Announces 2023 as ‘Year of Sustainability'

Focus on environmental sustainability by inspiring collective action through a nationwide commitment towards sustainable practices

January 20, 2023 UAE Business
Samana Developers to Launch 12 New Projects Worth AED 2.5 billion in 2023
Samana Developers to Launch 12 New Projects Worth AED 2.5 billion in 2023

Samana Developers plans to launch 12 new projects, including 5-star hotels, worth AED 2.5 billion.

January 17, 2023 UAE Real Estate
Green built environment: Real Estate leaders pledge to halve emissions
Green built environment: Real Estate leaders pledge to halve emissions

Real Estate industry signs up to reduce building-related emissions by 50% by 2030 and Net-zero by 2050

January 16, 2023 Switzerland Real Estate
Ahmed Galal Ismail appointed Chief Executive Officer of Majid Al Futtaim Holding
Ahmed Galal Ismail appointed Chief Executive Officer of Majid Al Futtaim Holding

Ahmed Ismail assumes the position from Alain Bejjani, who served in the role for eight years

January 16, 2023 UAE Real Estate
Brock Ballard is new Chief Revenue Officer of Bentley Systems
Brock Ballard is new Chief Revenue Officer of Bentley Systems

Brock Ballard has been promoted to the role of Chief Revenue Officer, and Eric Boyer joins as Investor Relations Officer

January 12, 2023 USA PropTech
 
Subscribe to our newsletter