# UK funds £90m data center heat reuse for 750,000 homes

London's mega heat project to slash heating bills using data center waste energy.

- **Source:** [Latest from TechRadar](https://www.techradar.com/feeds.xml)
- **Published:** 2026-09-29
- **Topic:** [Business](https://brifing.si/c/business)
- **Original article:** <https://www.techradar.com/pro/uk-government-reveals-gbp90m-plan-to-warm-homes-with-data-center-waste-heat-with-750-000-homes-getting-cheaper-heating>
- **On Brifing:** https://brifing.si/s/4563bba6-0a7f-43a5-b66b-73333ed4474d

## National heat network expansion

The UK government is investing £90 million to develop district heating systems utilizing excess heat from data centers. This includes £41 million for London's mega heat project, which will initially serve 650,000 homes through both new infrastructure and upgrades to existing networks. Similar systems have operated successfully in Copenhagen and Berlin for decades, proving the technology's viability for urban heating solutions.

## Thames heat transport innovation

During infrastructure construction, heated electric barges will temporarily transport hot water 25km along the River Thames. These insulated vessels will maintain water temperature until delivery to riverside storage tanks. While unconventional, this interim solution allows immediate heat distribution before underground pipes are completed in 2028.

## Regional implementation plans

Beyond London, £9.7 million will extend Manchester's heat network, while projects in Wales (Newport, Abergavenny), Yorkshire (Bradford), and the Midlands (Solihull) will modernize social housing heating. Bradford's new network represents a revival of mid-20th century industrial heating systems, adapted for contemporary energy efficiency standards.

## Economic and employment impact

The initiative unlocks £5 billion in total investment, creating construction and engineering jobs across multiple regions. River transport operations for the Thames barges will provide additional employment during the transitional phase. The government emphasizes this as part of a national reindustrialization strategy through energy infrastructure development.

## Technical specifications

Data centers generate sufficient excess heat to warm water for entire districts. The systems capture this thermal energy that would otherwise be wasted, circulating it through insulated pipes. London's network will eventually replace the temporary barge system with permanent underground distribution infrastructure.

## Policy context

This initiative aligns with the UK's Net Zero strategy, targeting both emissions reduction and energy security. By repurposing industrial byproducts, it addresses two challenges simultaneously: data center cooling needs and residential heating demands. The approach mirrors successful European models while adapting to UK's specific geographic constraints.

## Implementation timeline

Construction begins immediately, with Thames barge operations starting in 2028 as an interim measure. Manchester's social housing upgrades and Bradford's new network commence in 2024. The phased rollout allows testing different models across varied urban environments before potential national expansion.

## Long-term energy strategy

Beyond immediate bill reductions, this establishes infrastructure for future clean heat integration. The systems can potentially incorporate other waste heat sources or renewable energy. By demonstrating large-scale viability, the project could reshape how cities approach thermal energy management in decarbonization efforts.

## Sources covering this story

- https://www.techradar.com/pro/uk-government-reveals-gbp90m-plan-to-warm-homes-with-data-center-waste-heat-with-750-000-homes-getting-cheaper-heating — 

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_Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._
