DATA INSIGHTS | CASE STUDY
Unlocking Energy Efficiency at U.S. Data Centers Decarbonization
Insights into Waste Heat Reuse at Data Centers
Analytical work by AJW in collaboration with Evergreen Action and David Gardiner and Associates (DGA) to identify decarbonization opportunities at data centers via waste heat reuse.
Electricity consumed by data centers is ultimately released as heat, typically removed through cooling systems and discharged into the atmosphere. Rather than treating this thermal energy as waste, data centers can capture and redirect it to nearby industrial facilities, commercial buildings, or district energy networks. For industrial boilers, this recovered heat can preheat boiler feedwater or support space heating, reducing fossil fuel use while also easing the data center’s own cooling demand.
AJW evaluated potential waste heat recovery projects across several states by identifying data center locations in proximity to industrial facilities with existing boiler infrastructure. For background on the industrial boiler dataset underlying this analysis, see the companion case study: Industrial Boiler Pollution Across the U.S.
Our Methodology
- Data Acquisition: Data center projects within selected states were compiled using a variety of sources and news articles. Boilers were indicated via a sweep of unit and process level data from the U.S. EPA’s 2020 National Emissions Inventory (NEI).
- Facility Mapping: Data centers were categorized by operational status, developer, capacity (MW), and whether they are located in a federally recognized Disadvantaged Communities (DAC).
- Spatial Intersection: Five intersections, ranging from one to five miles, were run for each data center to evaluate whether a facility was located near an industrial boiler where heat reuse connection would be technically and economically plausible.
Key Findings
The analysis reviewed hundreds of data centers and thousands of industrial boilers, identifying key opportunities:
- Co-Location: Hundreds of boiler units in evaluated states were close enough to data center projects where connecting these sites via district energy loops offers opportunity to transition to a more circular energy model.
- Growing Opportunity: In states with significant growth in data center projects, such as Illinois, Virginia, and Pennsylvania, waste heat may serve as an effective decarbonization pathway for industrial polluters.
- Community Concern: Waste heat reuse may help ease community concerns in regions where data center development is receiving more pushback.
Renewable Fuel Replacement at Data Centers
Waste heat reuse is one of several decarbonization pathways AJW has explored for the data center sector. AJW has also explored decarbonization pathways for data centers via renewable fuel deployment. In a separate analysis, AJW quantified the opportunity to replace conventional petroleum diesel with renewable alternatives—such as renewable diesel and biodiesel—in the on-site power generation fleets of data centers across 26 eastern U.S. states. These generators, used for both emergency backup and non-emergency power, represent a significant and growing source of fossil fuel combustion and air pollution at data center facilities.
If you To discuss these findings or explore what this data means for your state or sector, please contact us.
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