Datacenters – Valuable heat providers for decarbonisation?
This study evaluates the techno-economic feasibility of datacenter waste heat recovery using heat pumps, with focus on liquid-cooled systems that provide stable heat streams at elevated temperatures. The objective was to quantify the levelised cost of heat under uncertain boundary conditions, identify dominant cost drivers, and assess the potential of thermal energy storages to reduce overall costs. A scenario-based modelling framework was applied, integrating technical data from industry partners with projections of future energy and carbon price developments. Uncertainty was explicitly represented to generate cost ranges instead of deterministic outcomes. Key parameters included heat pump investment costs, electricity prices, achievable full-load hours, target heat temperature, and distance to heat demand. The resulting cost ranges were benchmarked against alternative heat supply options. The results showed that liquid-cooled datacenters can provide economically competitive heat, particularly for applications requiring supply temperatures below 70 °C. Temperature lifts to approximately 130 °C remain feasible under favourable conditions. Sensitivity analysis revealed that electricity prices and capital expenditure exert the strongest influence on cost outcomes, while short-term thermal energy storage can reduce costs by improving utilisation of available waste heat. The findings underline the potential of datacenter waste heat as a decarbonised heat source and highlight substantial context dependence. Future research should incorporate more detailed cooling system representations, location-specific conditions, and the potential of flexible heat pump operation to further reduce costs.