A grand experiment: Google is building an MVP smart city from first principles in Toronto, and are projecting a 14% decrease in the cost of living and many small amenities. "When you can expect [self-driving] cars to drive at the speed limit and down the middle of the road, you can redesign how roads work". Locals seem to be most worried about data privacy.
Interesting: Dubai is a smart city rife with sensors, trying to make everyone happy.
Critics don't like the lack of privacy from so many sensors, and they're suspicious of tech people's efficiency mindset: that it'll kill the spontaneous interactions that make cities magical.
Canadians view privacy as a fundamental right. Americans see it as a nice-to-have (true).
Data privacy seems core to the messaging success of this smart city, and for that, housing data in servers colocated with the city is a critical PR win. Housing them on AWS or at a Google datacenter, regardless of the actual privacy of that data, would be vulnerable to bad PR. Suggests that smart city teams will need good devops and ops folks.

Wouldn't be surprised if techies systematically underestimate the general hysteria around data privacy. Just look at how derisive that sentence came out! Ha, meta.