Finland taught artificial intelligence data centers to heat cities

As part of innovative initiatives, Google and Microsoft are implementing heat recovery systems in Finland. The waste heat generated from cooling servers will be redirected to local heating systems, providing warmth for thousands of homes instead of being released into the atmosphere.

Google's Project in Hamina: 80% of the City's Heat

The first heat recovery project by Google is being implemented in Hamina, where a data center, operating since 2009, is expected to supply up to 80% of the local district heating needs by 2026.

Collaboration with Haminan Energia will allow heating for about 2000 facilities, including residential buildings, schools, and institutions. Interestingly, Google offers this heat for free. The data center uses 97% carbon-neutral energy, making the recovered heat virtually carbon-free.

In November 2024, the Finnish company Nohewa began construction of a 7.5 MW heat pump station, which is expected to start operating by the end of 2025, reducing CO2 emissions by 2000 tons annually. As of early 2026, the project is in its final stages.

Microsoft's Large-Scale Project for the Capital Region

Meanwhile, Microsoft, in collaboration with Fortum, is developing an even larger project that is expected to be fully operational by 2027. Two new data centers in Espoo and Kirkkonummi will provide heat for about 250,000 users, equivalent to approximately 100,000 homes.

The system will cover up to 40% of the heating needs in the area. Fortum plans to invest 225 million euros from 2023 to 2027 in the construction of pipelines and heat pump stations, which will reduce carbon dioxide emissions by 400,000 tons per year, equivalent to removing nearly 100,000 cars from the roads.

Construction of heat pump stations is actively ongoing, with the first test launches scheduled for this year.

Technological Progress in Heating

Heat recovery systems operate on a simple principle: servers generate heat during data processing, which usually goes to cooling systems. Instead, hot water (around 30°C) is sent to heat pump stations, where its temperature is increased to 60-90°C, meeting urban heating standards. The hot water is then supplied to consumers through underground insulated pipes.

After use, the cooled water returns to the data centers for a recycling cycle. One of the key aspects of the Finnish approach is that data centers are initially located close to existing heating systems, simplifying the heat recovery process. Microsoft confirms that the launch of the system in Espoo is scheduled for 2027.

Finland as an Example for Other Countries

Finland is actively developing the concept of a circular economy, where the waste of one process becomes resources for another. Since 2024, Fortum has been producing heating without using coal, relying on renewable sources and heat recovery.

According to Business Finland data, the share of renewable sources in heating increased from 70% to 73% between 2023 and 2024, while the share of CO2-neutral electricity reached 95%. These figures continue to improve towards 2026.

The European Union supports these projects under the NextGenerationEU program, and the Finnish Ministry of Economic Affairs and Employment provides investments. The success of Finnish initiatives is attracting the attention of other countries considering similar solutions.

From Experiment to Full-Scale Industry

Projects that started as experiments are becoming a full-fledged industry by 2026. The experience of small towns like Myntsyala, where a 75 MW data center has been providing two-thirds of heating needs for several years, confirms the viability of this concept.

Finnish data centers offer real solutions for reducing the carbon footprint in urban heating in the era of growing AI computing power. These projects transform technological waste into a resource, reducing dependence on fossil fuels and creating a new model of interaction between digital infrastructure and urban economy.

Geopolitical Aspects

From a geopolitical analysis perspective, the Finnish example demonstrates an interesting dependence on technological giants in the energy sector. Cities are effectively linking their municipal needs with the business solutions of large American companies, which was unthinkable even ten years ago. Although examples of industrial heat utilization are known, digital companies have never become such important utility providers for entire regions.

Technical analysis also reveals potential issues: data centers are optimized for computational tasks rather than for stable heating supply. Peak AI loads may not coincide with high heating demands, especially in conditions of anomalous cold. The question arises whether municipalities are prepared for a situation where heating depends on algorithms for distributing server capacities at an international level?

Source: hashtelegraph.com