Using Data Centre Waste Heat to Deliver Low-Carbon Heating

Data centres are an essential part of modern life and are only likely to become more prolific as the growth in artificial intelligence (AI) demands increasing levels of processing power. It is estimated that there are already around 477 data centres in the UK, with a further 100 expected to be developed in the coming years.

Data centres require vast amounts of reliable electricity and significant volumes of water for cooling. They also produce large quantities of waste heat. A commonly referenced figure is that for every 1 MWh of electrical energy consumed, an equivalent 1 MWh of heat energy is produced. This represents a substantial volume of heat currently released to the atmosphere, with clear environmental implications.

For data centres providing cloud storage, electrical demand and heat production are already significant. For those supporting AI workloads, these figures are considerably higher.

Due to requirements for reliable fibre connectivity, resilient electricity supplies and operational access, data centres are typically located on the edges of large urban areas. London and its surrounding counties remain the UK’s largest hub, with further concentrations developing around cities such as Manchester and Newcastle.

The infrastructure challenge created by data centres

The continued expansion of data centres presents a combination of challenges. These include the need for large, reliable electricity, water and fibre connections, alongside the environmental impact of heat generated at scale. Much of this development is taking place within or close to already densely populated areas.

Without intervention, significant quantities of usable heat risk being lost to the atmosphere. This creates both an environmental challenge and a missed opportunity.

Using data centre waste heat to support low-carbon heat networks

Power On has long been involved in the delivery of networked heat solutions for high-rise and high-density developments. Our experience includes the use of networked air source and ground source heat pumps to provide centralised heat and hot water across towns, campuses and residential developments. These approaches reduce the need for individual boilers or electric heaters, supporting lower electrical loads and more efficient, low-carbon heat delivery.

When this experience is considered alongside the heat generated by data centres, a new opportunity emerges.

Data centres typically need to be maintained at temperatures of around 18°C or lower. Cooling systems remove heat generated by servers and discharge it externally. When combined with the heat produced by server operation, the total volume of heat rejected can be significant.

By capturing this waste heat and redistributing it through local heat networks, it becomes possible to meet nearby residential or commercial heat demand without generating new heat. This creates two clear benefits: excess heat is no longer released to the atmosphere, and less primary energy is required to provide heating elsewhere.

In some cases, data centre operators may also be able to receive payment for waste heat supplied into local networks. While this may represent a relatively modest revenue stream, the environmental benefits are substantial and can contribute positively to corporate sustainability objectives and public perception.

Planning and future development considerations

As data centre numbers increase and climate considerations become more prominent, planning frameworks may place greater emphasis on environmental performance and energy efficiency. Heat recovery and integration with surrounding developments may increasingly support planning discussions, particularly in urban environments.

Closer collaboration between data centre developers, local authorities and housing developers is likely to become more important. Power On can support these conversations by bringing together expertise in utilities, heat networks and infrastructure planning.