Could the Data Centers That Spike Your Energy Bill Soon Heat Your Office?

Data centers are renowned energy vipers. But some are transitioning into energy powerhouses that are heating local cities.

BY MELISSA ANGELL, SENIOR STAFF WRITER @MELISSKAWRITES

Illustration: Inc.; Photo: Getty Images

One large data center typically consumes about 100 megawatts of power annually—enough to heat 100,000 homes for a year. Historically, that’s been a one-way transaction, with data centers drawing heavily from local power grids while communities get little in return. Now, some operators are changing that equation, repurposing waste heat to warm nearby buildings and power local infrastructure, perhaps even entire cities. 

The change arrives as lawmakers call upon data centers to foot their own energy bills and steer clear of straining the energy grid. Pennsylvania governor Josh Shapiro is among those vocal critics, recently calling for hyperscalers to “pay for your own power, so it’s not saddling local businesses or homeowners with higher costs.” And during a high-stakes State of the Union address on Tuesday, President Donald Trump announced a new “rate payer protection pledge,” which directs major tech companies to build out their own power infrastructure as data centers drive up energy demand and, subsequently, energy costs.

Research from Carnegie Mellon University predicts that data centers, on average, will cause electric bills to rise 8 percent by 2030, though areas like Northern Virginia, known as Data Center Alley, might see that figure spike to 25 percent.

With rising awareness and the threat of regulation, some data centers are starting to take less and give more. At least energy-wise. 

How Canva Became the Power Player in the AI Design Wars

“We’re at a turning point where data centers are evolving from consumers of resources to becoming a source of clean, affordable energy for local communities,” says Katie McGinty, vice president and chief sustainability and external relations officer at Johnson Controls, a global technology company that focuses on HVAC. 

Some cities in Europe, along with parts of the U.S., are utilizing a model known as district heating, which can heat or cool a cluster of facilities through a central plant. The main difference between district heating and an electrical grid is that grids move electricity whereas district heating moves thermal energy. Heat is made from either steam or hot water and is also called “waste” heat, a thermal energy byproduct derived from places like factories or data centers. The Mäntsälä data center in Finland, for instance, heats about 2,500 homes by harvesting the waste heat it generates, pushing energy costs down for locals. 

The same model is one that could benefit others in the community, from schools to small businesses. 

© Inc.com