Danish data centers struggle to utilize surplus heat

Only a small fraction of Denmark’s approximately 50 data centers are actively utilizing the surplus heat they produce. According to the Danish Energy Agency, only four centers are known to utilize this heat, though the industry organization Datacenterindustrien reports that seven are currently doing so, with two more in development.

Most surplus heat is released into the air rather than being channeled into district heating networks or industrial processes. Industry leaders cite several barriers to integration, including previous price caps and taxes on surplus heat that limited the ability of heating companies to invest in necessary infrastructure. Additionally, heating companies are currently depreciating biomass plants, affecting their capacity to invest in new heat sources.

One notable example involves an Apple data center near Viborg. Despite Apple offering to provide surplus heat free of charge, price cap regulations have resulted in the facility venting heat that could be valued at three million kroner monthly. Viborg Varme estimates that the city could miss out on savings of 712 million kroner over a 20-year period due to this lack of utilization. New EU requirements are expected to mandate that future data center constructions integrate with district heating networks from the outset.