Earlier quoted context omitted.
The question would be whether a single PC has enough computing power to run the entire region. It looks like the new SimCity engine actually simulate behavior of each car/person and resource transportation. Would simulating all the agents of the entire region works?
I don't know if that argument works economically. EA has to support something like 100,000 simultaneous users, so if the server side needs more than one PC worth per user then their EC2 bill would be off the charts. (I see nwh made this argument earlier.) I suspect that inactive cities in a region are simulated with a lower level of detail.
But they would have to do it if you can actually control other cities in the regions. If you play one city and then switch to another city for, say, 1 game year, what's going to happen to your previous city? Does its time stop? Would AI have to take good care of all cities?