Urban congestion is a pressing challenge, driving up emissions and compromising transport efficiency. Advances in big-data collection and processing now enable adaptive traffic signals, offering a promising strategy for congestion mitigation. In our study of China’s 100 most congested cities, big-data empowered adaptive traffic signals reduced peak-hour trip times by 11% and off-peak by 8%, yielding an estimated annual CO₂ reduction of 31.73 million tonnes. Despite an annual implementation cost of US$1.48 billion, societal benefits—including CO₂ reduction, time savings, and fuel efficiency—amount to US$31.82 billion. Widespread adoption will require enhanced data collection and processing systems, underscoring the need for policy and technological development. Our findings highlight the transformative potential of big-data-driven adaptive systems to alleviate congestion and promote urban sustainability. Big-data empowered traffic signal control in China can reduce vehicle trip times, creating potential reduction of 31.73 million tonnes (Mt) of CO2 emissions annually and US$31.8 billion benefits per year.