Queen Mary University of London (QMUL) has unveiled a pioneering system that recycles heat from its on-site data centre to supply hot water and heating across campus, cutting carbon emissions by more than 700 tonnes a year.

In partnership with Schneider Electric, QMUL has developed a closed-loop system that captures warm water used to cool server racks, upgrades it from 23°C to 65–75°C via heat pumps, and feeds it into the university’s district heating network. The project, which also supports particle physics research linked to CERN, saves around £240,000 annually in gas bills and significantly reduces reliance on gas boilers.

Despite its success, the UK has been slow to adopt data centre waste heat reuse compared with parts of Europe. District heating serves only 2 to 3 per cent of homes, a legacy of cheap North Sea gas and housing designed around individual boilers. But energy price pressures and shifting policy are now driving change.

The Department for Energy Security and Net Zero has identified six towns and cities for new heat network zones that include data centre integration. Among them is the Old Oak and Park Royal Development Corporation in West London, where a new network will deliver heating to over 9,000 homes and businesses using industrial heat pumps fed by local data centres.

While these developments are promising, rolling out district heating in the UK faces obstacles. Existing urban layouts, major infrastructure projects such as HS2 and uncertainty over customer uptake have slowed progress. However, new regulations will require heat networks to connect to the lowest-carbon sources, a move expected to boost confidence and investment.

Scandinavian countries offer a model for success. In Finland, Fortum and Microsoft are working together to supply up to 40 per cent of Espoo’s heating using waste heat from hyperscale data centres. Long-term planning, tax incentives and a strong cultural emphasis on energy efficiency underpin such schemes.

In the UK, where large-scale district heating is rare, smaller and modular systems may be more practical. Firms like Qarnot are developing compact, liquid-cooled computing units that generate water at 65°C, ideal for integration with local heating. This “compute where heat is needed” approach allows for fast deployment and lower emissions by doubling the use of energy for both processing and heating.

QMUL’s initiative shows how computing infrastructure can be repurposed for climate and economic gain. As the UK accelerates its AI and high-performance computing ambitions, such circular energy models offer a route to cut emissions and reduce energy costs while supporting digital growth.

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