PRESS RELEASE : Thousands of homes to be kept warm by waste heat from computer data centres in UK first [November 2023]

The press release issued by the Department for Energy Security and Net Zero on 3 November 2023.

More homes and businesses to benefit from cleaner, low-cost heating – thanks to almost £65 million in government support for 5 green energy projects.

Thousands of homes will be kept warm by waste heat from nearby data centres for the first time in the UK – thanks to a share of nearly £65 million of government funding for 5 green heating projects across the country.

The Old Oak and Park Royal Development Corporation in the London boroughs of Hammersmith and Fulham, Brent and Ealing will be the first of its kind to recycle waste heat from large computer systems storing internet data to supply heating for the local community.

The heat network, backed by £36 million in government support, will connect 10,000 new homes and 250,000m2 of commercial space to a low-carbon energy source that will help keep bills low and contribute to the UK’s drive to reach net zero by 2050.

It is one of 5 innovative green heating projects in London, Watford, Suffolk and Lancaster allocated grants from the Green Heat Network Fund. Together they are expected to create thousands of skilled jobs, helping deliver the government’s promise to grow the economy.

One of these successful projects will see Lancaster University fully decarbonise its campus, by receiving over £21 million in support for a new low-carbon heat network. The heat network will supply heat to the university campus using a large heat pump, powered by a new solar farm and existing wind turbine.

Energy Security Secretary Claire Coutinho said:

Innovative projects, like these announced today, are another example of why the UK is a world leader in cutting carbon emissions.

We are investing in the technologies of the future so that families across the country will now be able to warm their homes with low-carbon, recycled heat – while creating thousands of new skilled jobs.

Lord Callanan, Minister for Energy Efficiency and Green Finance, said:

Keeping homes warm with waste heat from technology is a glimpse into the future – and demonstrates just how innovative this country can be when it comes to reducing our carbon emissions.

The £65 million we’ve awarded today will help spread this success across the country, by rolling out innovative low-carbon heating to help to drive down energy bills and deliver our net zero goal.

Heat networks supply heating and hot water to homes and businesses via heat pumps or sources from underground, manufacturing, and waste management. They help cut carbon emissions by supplying heat to multiple buildings from a central source, avoiding the need for households and workplaces to rely on individual, energy-intensive heating solutions, such as gas boilers.

The transition to heat networks forms a major part of the UK’s carbon reduction commitment, with heating in buildings making up 30% of all UK emissions.

Today’s round of funding comes on top of £122 million already awarded to support 11 new heat network projects across the country, under the government’s Green Heat Network Fund.

The full list of projects to receive support today are:

• Old Oak Park Royal Development Corporation will receive £36 million to construct a heat network using waste heat from data centres to provide heating to over 10,000 homes and 250,000m2 of commercial space
• a new heat pump housing estate in Chilton Woods, Suffolk will see nearly 1,000 homes and a primary school provided with low carbon heating. The project, which has received £745,000, will also include a thermal store, meaning any excess energy generated from the system will be fed into the wider National Grid
• the London Borough of Brent will receive nearly £5.2 million for the South Kilburn District Heat Network, supplying heat using air source heat pumps combined with back up gas boilers to 34 sites via a 2.79km pipe network, connecting 2,900 customers.
• Watford Community Housing (WCH), a not-for-profit housing association with approximately 5,700 homes, will receive £1.8 million of funding to replace an old gas district heating system with ground source and air source heat pumps. This will provide heat to 252 apartments across 6 blocks
• Lancaster University will receive more than £21 million to fully decarbonise its campus with a low carbon energy centre. The centre will use air source heat pumps, thermal storage and electrical infrastructure works

Matthew Basnett, the Association for Decentralised Energy’s (ADE) Heat Network Policy Lead, said:

Heat decarbonisation in buildings is a huge challenge, and one that is often fundamentally misunderstood – heat networks are the only internationally proven route for decarbonising heat at scale, yet most people don’t know what they are.

We are excited to see that another round of the Green Heat Network Fund has been successful, and celebrate the news that a first-in-the-UK development will use waste heat from data centres to keep more than 10,000 homes warm, comfortable and affordable in the long term. We now look forward to seeing the government work with industry to raise the profile of heat networks as a versatile solution for heat decarbonisation.

David Lunts, Chief Executive of the Old Oak and Park Royal Development Corporation (OPDC), said:

Recycling the huge amounts of wasted heat from our local data centres into heat and energy for local residents, a major hospital and other users is an exciting and innovative example of OPDC’s support for the mayor’s net zero ambitions.

We are excited to be leading the way in developing low carbon infrastructure, supporting current and future generations of Londoners in Old Oak and Park Royal to live more sustainably.