Ørestad Smart District

Overview

Ørestad is a purpose-built smart district in Copenhagen, Denmark, developed since the mid-1990s as part of the city’s long-term strategy for sustainable urban growth. Located on the island of Amager, the district spans about 3.1 square kilometers and is planned around high-density development, contrasting with the surrounding open commons. Ørestad includes four main zones and combines compact housing, smart mobility, and modern architecture with digital infrastructure. While detailed features like automated metro systems and innovation hubs define its identity, the district more broadly reflects Copenhagen’s vision to accommodate population growth, attract investment, and support major infrastructure. Though widely recognized as a successful model of smart city planning, Ørestad has also raised concerns about social inclusivity and long-term affordability.

Goals and Aspirations

Develop a compact and sustainable city district. Ørestad was planned to help Copenhagen grow without spreading too far out. Instead of building more suburbs, the idea was to create a dense neighborhood where people can live, work, and study in the same area. The district includes housing, offices, schools, and public services all close together, which makes it easy to get around and reduces long travel times. The plan also protects the nearby nature areas, like Amager Fælled, and supports the city’s goal of becoming carbon neutral by 2025. Most buildings are built to high energy standards. Overall, the goal is to use land more wisely and reduce the city’s environmental impact.

Make public transport the backbone of the district. Public transport is a central part of how Ørestad works. The area was built around the M1 metro line, which is fully automatic and runs often between Ørestad, the city center, and the airport. There are also buses, bike lanes, and pedestrian paths to make it easier for people to get around without needing a car. The goal is to make public transport so easy and reliable that more people will use it. This helps cut down on traffic and pollution. It also made the land near the stations more valuable, which helped pay for the metro during the early stages of the project.

Attract business, talent, and innovation. Ørestad was designed to bring in new businesses and people with creative and technical skills. The area includes modern office buildings, retail spaces, schools, and cultural landmarks like the Copenhagen Concert Hall and the headquarters of the Danish Broadcasting Corporation. These institutions help make the district more attractive to professionals and companies. It’s also home to the IT University of Copenhagen, which supports collaboration between students, researchers, and industry. A local group called OICC (Ørestad Innovation City Copenhagen) connects public and private organizations to test new smart city ideas, like digital infrastructure and green technologies. The idea is that by creating a mixed, high-quality environment, Ørestad will not only draw in companies from across Denmark but also appeal to international startups and researchers. Over time, the district is meant to grow into a center for innovation and economic activity in Northern Europe.

Create an inclusive and livable community. Ørestad’s plan also includes building a community that feels welcoming and works well for different people. There are many types of housing here—family apartments, student housing, and even affordable units—so that people from different backgrounds can live in the area. There are also shared public spaces, like parks, plazas, and walking paths, to encourage community life. One big example is the UN17 Village, where housing design includes health, affordability, and sustainability goals. Still, not everything is perfect—some people think the area is still too expensive. But the long-term goal is to make Ørestad a place where people not only work or study, but also want to live.

Key Characteristics

Mixed-use urban structure. Ørestad was designed as a compact, mixed-use district where homes, offices, shops, schools, and public institutions all sit close together. This layout makes it easier for people to live, work, and study in the same area without needing long commutes. For example, Ørestad Nord includes media companies like the Danish Broadcasting Corporation, the IT University of Copenhagen, and residential buildings all within walking distance. This creates a lively urban environment throughout the day and night. Restaurants, concert halls, and parks are spread across the district, encouraging social life beyond working hours. The goal is to make the city more active and convenient, while also using land more efficiently. By integrating daily life functions, Ørestad supports a more flexible and connected urban lifestyle.

Presence of knowledge and research institutions. Education and research are an important part of Ørestad’s identity. The district includes the IT University of Copenhagen, one of Denmark’s main tech-focused universities, as well as Ørestad Gymnasium, a public high school known for its modern architecture and digital learning approach. These institutions bring students, researchers, and tech professionals into the area on a daily basis. Ørestad is also located close to other academic hubs in Copenhagen, making it easy for collaboration across institutions. This educational presence helps attract talent and supports the city’s strategy to grow as a knowledge-based economy. Having schools and universities nearby also helps connect the district to the next generation of innovators and professionals.

High physical and digital connectivity. Ørestad is one of the most well-connected areas in the region, both physically and digitally. It sits at a major transport intersection, with direct access to the M1 metro line, regional trains, and the E20 highway. This means residents and businesses can reach downtown Copenhagen, the airport, and Malmö, Sweden, within minutes. The district is also designed with wide bike lanes and walkable streets to support low-carbon mobility. In terms of digital infrastructure, Ørestad has high-speed internet and smart city networks that enable real-time services like traffic monitoring and energy management. This connectivity is not just about convenience—it’s also what makes it possible to test and scale smart city technologies in daily life.

Innovation ecosystem and collaborative platforms. Ørestad is more than just a residential or office zone—it also serves as a space for innovation and testing new ideas. One of the main players is Ørestad Innovation City Copenhagen (OICC), a local partnership that brings together public agencies, businesses, and universities. OICC supports pilot projects related to smart energy, mobility, digital governance, and climate adaptation. The district acts as a real-world testing ground, or “living lab,” where new technologies can be used and improved in everyday settings. For example, infrastructure in Ørestad has been used to test smart street lighting and waste systems. These collaborations help attract investment and keep the district at the forefront of urban innovation.

Sustainability as a core design principle. From the start, sustainability has been a key part of Ørestad’s design. The district encourages low-carbon transport with access to metro lines, bike paths, and walkable public areas. Many buildings are built with energy-saving technologies like solar panels and smart heating systems. One standout example is the UN17 Village, which aims to meet all 17 of the United Nations’ Sustainable Development Goals. It includes features like green roofs, water-saving systems, and accessible public spaces. The project also tracks social metrics like affordability and diversity. Sustainability here is not just about the environment—it’s also about health, inclusion, and long-term value for both people and the planet.

Stakeholders

​Ørestad Development Corporation, including Copenhagen Municipality and Danish Ministry of Finance.Ørestad Development Corporation was created in 1993 to plan and manage the development of Ørestad. It was jointly owned by the City of Copenhagen (55%) and the Danish Ministry of Finance (45%). This organization was responsible for the area's zoning, land sales, and metro construction. The company used land-value capture—raising money through increased land prices near new transport—to fund large infrastructure like the M1 metro line. While the company was dissolved in 2007, it laid the foundation for how Ørestad was built and set a model for public-private urban development. Its actions reflected the shared interests of municipal and national governments in promoting growth and sustainability. Ørestad Development Corporation Copenhagen Municipality, Danish Ministry of Finance

OICC (Ørestad Innovation City Copenhagen). By & Havn was created in 2007 by merging the Ørestad Development Corporation and the Copenhagen Port Authority. It is jointly owned by the City of Copenhagen (55%) and the Danish government (45%), represented through the Ministry of Transport. The organization manages land development in both Ørestad and other major areas like Nordhavn and Sydhavn. Although publicly owned, By & Havn operates with a business-like structure, giving it more flexibility in making investment decisions, forming partnerships, and managing long-term urban growth. Its role includes selling land, maintaining infrastructure, and ensuring that development meets sustainability goals. By & Havn also collaborates with private developers and city agencies to bring in funding and test innovative solutions. It plays a key part in turning policy ideas into real urban change and helps make Ørestad a testbed for Copenhagen’s broader smart city and climate strategies. OICC

By & Havn. OICC is a partnership platform based in Ørestad that connects public institutions, businesses, universities, and developers to work together on smart city solutions. It was created to promote open collaboration, not just top-down planning. One of its main goals is to turn Ørestad into a real-world test area, or “living lab,” where new technologies can be developed, tested, and improved before being used at a larger scale. OICC has supported pilot projects on digital mobility, energy optimization, and circular economy models. It also helps build connections between private companies and the city’s sustainability goals, ensuring that innovation aligns with public needs. The group hosts workshops, events, and project matchmaking to keep stakeholders involved and informed. By encouraging this kind of cooperation, OICC plays a key role in making Ørestad not just a smart district—but one that reflects the shared ideas of the people and institutions that help build it. By & Havn

• Individuals Anne Skovbro. Anne Skovbro is the CEO of By & Havn, the agency responsible for planning and development in Ørestad. She has a background in urban planning and economic development, and previously worked in philanthropy and city strategy. As CEO, she oversees major land use decisions, infrastructure projects, and partnerships with both public and private actors. Her leadership plays a big role in how Ørestad balances long-term city goals—like sustainability and livability—with the financial realities of development. She often speaks publicly about how cities can attract global investors while still serving local needs. Interviewing her would offer insight into how the smart district is managed day-to-day, what trade-offs are made in planning, and how innovation fits into the broader growth of Copenhagen. She’s a key figure in understanding how policy ideas are turned into actual buildings, streets, and services in Ørestad.Anne Skovbro, By & Havn

  Pia Gjellerup. Pia Gjellerup is the Chair of the Board at By & Havn and a former Danish Minister of Justice, Finance, and Trade. Her long political career gives her deep insight into how national and local governments shape urban policy. In her current role, she provides strategic guidance on how large-scale development projects like Ørestad align with Copenhagen’s long-term planning goals and legal frameworks. She is especially involved in making sure that public investments deliver both economic and social value. Her perspective is important because she sits at the intersection of politics, finance, and urban development. Speaking with her could offer valuable insights into how decisions are made at the highest level—what gets prioritized, how risks are managed, and how public concerns are addressed in planning. She helps ensure that Ørestad stays grounded in civic responsibility while pursuing innovation and growth. Pia Gjellerup,By & Havn

  Stan Majoor. Stan Majoor is an urban researcher and planner who has studied Ørestad as a case of top-down urban development in a democratic context. While he was not directly involved in the project, his academic work offers an independent, critical view on how governance and citizen participation played out during Ørestad’s planning and construction. He argues that early promises of public engagement faded as the project became more market-driven and led by state and municipal interests. His research has been widely cited in debates about smart cities, especially around transparency, accountability, and inclusion. Interviewing him could provide a valuable outsider perspective on what the Ørestad project might have missed—such as long-term social equity or bottom-up innovation. He also offers insight into how similar smart city models could evolve to become more inclusive. His work helps balance the success stories with questions that are just as important. Stan Majoor

Technology Interventions

Automated Metro System. Ørestad’s M1 metro line is one of Europe’s earliest fully automated public transit systems, offering a driverless, high-frequency service that is integrated into Copenhagen’s citywide mobility network. The system uses digital signaling, real-time monitoring, and platform screen doors to ensure safe and efficient operations. Data on train location, passenger volume, and faults are continuously collected and processed to optimize flow and reduce delays. The infrastructure was developed through public investment by the Ørestad Development Corporation and later managed by Metroselskabet. Its operation is based on EU standards for interoperability and safety. Beyond mobility, the metro helped drive up land value in the district, forming a key part of the project’s land-value-capture financing model.

Smart Grid and Energy FlexLab. Ørestad includes experimental energy projects like the Energy FlexLab, which tests how buildings can shift energy use in real time. Smart meters, IoT sensors, and AI-based prediction tools help manage heating, cooling, and electricity consumption to balance demand with renewable supply. These systems are tied into Denmark’s national energy grid and follow EU smart grid standards. Data such as internal temperatures, occupancy levels, and price signals are used to forecast and optimize energy loads. The initiative supports Copenhagen’s carbon neutrality goal while lowering grid stress and energy costs. It’s a living lab model where residents contribute anonymously to real-time energy experiments, under strict GDPR-compliant frameworks.

IoT-Based Urban Management. Public infrastructure in Ørestad is embedded with IoT devices that support data-driven services such as dynamic street lighting, automated waste collection, and air quality monitoring. These sensors continuously collect data on traffic flow, CO₂ levels, and bin fill rates, which are processed via centralized dashboards used by municipal agencies. This system improves efficiency and reduces environmental impact by enabling predictive maintenance and optimized service delivery. The technology runs on standard communication protocols and is part of Copenhagen’s broader smart city platform. While effective, the system has raised questions about long-term data governance and the need for more transparent public oversight.

UN17 Village Smart Buildings. Within Ørestad, the UN17 Village is a smart residential complex designed to implement all 17 UN Sustainable Development Goals. The buildings use digital twins and IoT systems to monitor energy use, indoor air quality, water consumption, and accessibility in real time. Residents and facility managers can access dashboards showing environmental and health metrics, while algorithms help adjust ventilation or lighting automatically. The system also tracks social impact indicators like affordability and diversity. The project is financed through ESG investment and supported by public-private partnerships. Its tech architecture emphasizes sustainability, resilience, and transparency, making it one of the most comprehensive smart housing pilots in Northern Europe.

Financing

Land value capture model. Ørestad’s smart infrastructure—especially the M1 driverless metro line and public utilities—was mainly financed through a land value capture model. This financing mechanism allowed the Ørestad Development Corporation (co-owned by the city and state) to fund major infrastructure by selling land whose value increased due to the new metro and planning approvals. After rezoning and construction began, land around Ørestad’s transport hubs was sold or leased to developers at higher prices. The revenue helped cover the costs of building the metro and later supported smart technologies like energy-efficient buildings and digital traffic systems. By & Havn continues to use this model today, funding public investments through strategic land sales. While land value capture reduces the need for direct taxpayer funding, it also relies heavily on a strong property market and has raised concerns about rising prices and affordability in the area.

Outcomes

A real-world testbed for smart urban technologies. Ørestad has become a “living lab” where new technologies are tested at city scale. Over the years, it has hosted experiments in smart mobility, digital waste collection, energy flexibility, and sensor-based infrastructure. These pilots are not just isolated projects—they are integrated into how the district functions day to day. For example, the Energy FlexLab allows researchers and utility providers to study real-time energy use in buildings, while IoT-based streetlights and waste bins help optimize city services. These outcomes make Ørestad an active innovation platform rather than a static development. It has helped Copenhagen build its reputation as a smart city leader, and the knowledge gained here is now informing future development in other districts like Nordhavn and Sydhavn.

Boost in land value and investor confidence. The development of Ørestad has significantly increased land value in the area, turning previously unused space into profitable real estate. New housing, retail, office space, and cultural buildings have attracted both domestic and international investors. The district’s proximity to the metro, airport, and downtown Copenhagen has made it a desirable location for businesses and residents alike. According to city data and reports, land values around metro stations rose sharply after zoning and infrastructure upgrades. This outcome validated the land value capture model used to finance the metro, making it an example for similar projects across Europe. Ørestad’s success in attracting investment has given public agencies like By & Havn more financial leverage in planning future smart infrastructure.

Raised public debate around equity and inclusion. While Ørestad is often praised for its design and technology, it has also sparked debate about who benefits most from these innovations. Critics point out that rising land and housing prices have made parts of the district unaffordable for average residents. Although the original plan included mixed-income housing, much of the new development has catered to middle- and high-income households. These issues have led to public discussions about whether smart cities like Ørestad are truly inclusive or if they risk deepening social divides. The project has therefore contributed not only to new technology and urban form, but also to important conversations about affordability, governance, and the social responsibilities of innovation.

Open Questions

Can Ørestad become more socially inclusive as it continues to grow?. While Ørestad has succeeded in attracting investment, building modern infrastructure, and piloting smart technologies, it still faces criticism around affordability and social equity. Many of the new apartments are priced for upper-middle-income households, and public housing makes up only a small share of total units. This raises a key question: as the district continues to expand, will future development prioritize a broader range of housing types and income levels? And if not, could Ørestad become a symbol of “smart for the few” rather than “smart for all”? This challenge reflects a broader tension in many global smart city projects between innovation and inclusion.

How will long-term governance and accountability be handled?. Ørestad’s planning and financing model relies heavily on semi-public agencies like By & Havn, which operate with private-sector flexibility but manage public assets. While this model has delivered results quickly, it raises questions about long-term transparency and democratic oversight. Who ultimately decides how land is used, how data is collected, and how benefits are distributed? As new technologies and partnerships emerge, the issue of who holds decision-making power—and who is left out—will become even more important. This leads to a deeper question: what kind of governance is needed to ensure that smart districts remain accountable to the public?

Is the district’s smart infrastructure adaptable to future needs?. Much of Ørestad’s infrastructure—metro, energy systems, digital networks—was designed over 10–20 years ago. Although it was state-of-the-art at the time, technologies and social needs evolve rapidly. Can the district’s current systems adapt to future demands, such as climate extremes, aging populations, or new mobility modes like autonomous vehicles? And are there enough built-in mechanisms to update or replace aging systems without major disruption? The flexibility and resilience of Ørestad’s smart infrastructure will be tested over time, and the answers may shape how Copenhagen designs its next-generation city districts.

References

Primary Sources

• Ørestad Innovation City Copenhagen (OICC). (n.d.). OICC official website. Retrieved March 26, 2025, from https://oicc.dk

• Rigsarkivet. (n.d.). Arkivalieronline. Danish National Archives. Retrieved March 26, 2025, from https://www.rigsarkivet.dk/arkivalieronline/

• By & Havn. (n.d.). Forretningsstrategi 2024–2027 [Business Strategy]. Retrieved March 26, 2025, from https://byoghavn.dk/forretningsstrategi/

• UN17 Village. (n.d.). The Five Buildings. Retrieved March 26, 2025, from https://www.un17village.dk/en/fakta

Secondary Sources

• Majoor, S. (2008). Disconnected innovations: New urbanity in large-scale development projects—The cases of Zuidas Amsterdam and Ørestad Copenhagen. European Planning Studies, 16(5), 687–700. https://doi.org/10.1080/13563470802291978

• Knowles, R. D. (2012). Transit oriented development in Copenhagen, Denmark: From the Finger Plan to Ørestad. Journal of Transport Geography, 22, 251–261. https://doi.org/10.1016/j.jtrangeo.2012.01.009

• State of Green. (n.d.). City of Copenhagen: Connect and explore latest solutions. Retrieved March 26, 2025, from https://stateofgreen.com/en/solution-providers/city-of-copenhagen

• Global Platform for Sustainable Cities (GPSC). (n.d.). The Copenhagen model: A publicly owned, privately run corporation – Case study. Retrieved March 26, 2025, from https://www.thegpsc.org/sites/gpsc/files/5._copenhagen.pdf