The ‘smart city’ has been driven by advances in information and communication technologies, with the aim of integrating these technologies with urban infrastructures for improved optimisation, automation and control. Smart cities have emerged as a response to the challenges faced by megacities and are likely to manifest the ‘datafying’ society in the public space. However, the pervasive nature of data collection, continuous analysis and inference, and long-term data storage result in a potentially problematic reconfiguration of society that undermines individual and collective autonomy. This article proposes the concept of ‘data autonomy’ as a guiding principle for the development of smart cities, addressing challenges related to the potential misuse of personal data, sphere transgression, and datafied gentrification. Section II. explores concerns related to data protection law, which can be understood as a proxy for the relationship between the individual and society, highlighting power dynamics and the autonomy of individuals and communities. Section III. discusses the concept of sphere transgression, where tech giants expand their influence in society without adequate expertise or accountability. Section IV. examines the potential impact of datafied gentrification on individual and collective autonomy. Building on the challenges identified throughout these sections, this paper proposes ‘data autonomy’ as a guiding principle for smart city development in section V., promoting a value-based approach centred on human dignity. To make it practicable, increased interdisciplinary collaboration in the development of smart cities is needed, with a particular focus on improved design and impact assessment methodologies.