Why a Failed ‘Smart City’ Is Still Relevant

A Google-backed proposal to turn an underused section of Toronto waterfront into a tech hub holds relevant lessons about privacy and data.

1 minute read

May 23, 2025, 7:00 AM PDT

By Diana Ionescu @aworkoffiction


Aerial view of dense urban center with lines indicating smart city concept.

tampatra / Adobe Stock

Five years after the failure of Google-affiliated Sidewalk Labs’ proposal to build a hyperconnected, tech-forward planned community in Toronto, Stephen Goldsmith reflects on the lessons that planners learned — and forgot — from the experiment.

For Goldsmith, the project created questions about privacy, digitally connected cities, and data handling. “If anything, the landscape has only gotten more complex, dispersed and high-stakes.”

New mobility services, connected vehicles and on-demand deliveries track the movements of people and goods across cities. An explosion of video cameras, license plate readers, drones and biometric tools monitor public spaces and promise better safety and enforcement. Sensor networks optimize services by capturing endless data streams on peoples’ health, energy use, parking and more.

Goldsmith argues that, while there is a net benefit to the growth of this technology, civic leaders must take proactive steps to protect citizens’ privacy and understand how data is being captured, monitored, and used. Cities must also “set clear policies for external partners” and offer complete transparency around data collection.

For Goldsmith, “When it comes to balancing technology’s benefits and risks in urban environments, the story is just getting started, and local leaders need to keep up with it.”

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