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I implemented cascading dropdown for City, State and Zip for a site collection. We are housing over 60 site collections and most of the now going through business process development. There is a huge demand for infopath forms with cascade drop down.

Does this mean all of those 60 site collections needs their own list for City, State and zip and maintain their own? This sound cumbersome to me.

Are there better solution as to maintain one set of lists (City, State and Zip) and consume it from one location?

Maria Burton
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The first place I'd look is at Managed Metadata to see if that would work for you. It allows you to manage that data in once place but have all sites use it

Dave Wise
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I think one thing you could use here is the Content Deployment. It's a great way of sending content from one site collection to another.

I have no affiliation with this project, but it works great.
SharePoint Content Deployment Wizard

I think it will serve you great purpose for this :)