Datacentres fail to use most surplus heat

Only four of Denmark’s 50 datacentres use their surplus heat, according to figures from the Danish Energy Agency, DR reports. The industry association Datacenterindustrien says the number is seven, but agrees that too little of the heat is being used.

When datacentres were established across the country about 10 years ago, their surplus heat was presented as a potential benefit for local communities and their heating supplies.

The computers’ servers run around the clock and generate large amounts of heat. Because the datacentres cannot use all of it themselves, the heat is released into the air instead of being used, for example, to heat homes.

Economic barriers

Henrik Hansen, director of Datacenterindustrien, told Ritzau that legislation had made it difficult for companies to use the heat. Surplus heat had been subject to a tax and a price cap, making it an unattractive business model, he said.

Following a legislative amendment in 2022, companies can avoid the tax if they enter into an arrangement with the Danish Energy Agency.

Climate, Energy and Utilities Minister Samira Nawa said surplus heat from datacentres should generally be used, but added that it must make sense locally. The feasibility depends on factors including the datacentre’s distance from the district heating network and whether new pipes and technical equipment would be needed.

Any solution must not result in higher heating bills for people living in municipalities with datacentres, the minister said in a response to Ritzau.

Hansen expects the use of surplus heat to increase as a result of new European Union guidelines, which he said would create stronger incentives and pressure to examine all available options.