Waste heat from computer data centres is set to provide heating and hot water to more than 10,000 UK homes.
Five projects across London, Watford, Suffolk and Lancaster will receive a share of nearly £65 million from the Green Heat Network Fund.
One of the projects will see Lancaster University fully decarbonise its campus by waste heat and will receive 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.
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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.”
Minister for energy efficiency and green finance Lord Callanan said: “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.
“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.”
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.