Thousands of homes are set to be heated in a UK first, using waste heat from nearby data centres, thanks to a share of nearly £65 million of government funding for five green heating projects across the country.

The Old Oak and Park Royal Development Corporation across four London boroughs 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 £36m in government support, will connect 10,000 new homes and 250,000 square meters 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 five 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 as part of the government’s aim 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.

“Innovative projects, like these announced today, are another example of why the UK is a world leader in cutting carbon emissions,” energy security secretary Claire Coutinho said.

“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.”

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.

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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.

Data centres consume tonnes of energy in order to function, and with the rise of AI, their energy consumption is even more worrying. The average storage rack for an AI system will consume the same amount of energy as 25 houses, meaning finding a way to make these centres more sustainable is vital to meet climate goals.

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.

“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,” Lord Callanan, minister for energy efficiency and green finance, said.

“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.”