Developing zones for heat networks in urban areas is the cheapest and most efficient way of delivering the technology, which recycles excess heat – generated for example by data centres or from factories – to enable the heating of several buildings at once. 

The schemes in Leeds, Plymouth, Bristol, Stockport, Sheffield, and two in London will receive a share of £5.8 million of government funding to develop the zones, with construction expected to start from 2026. This will help to create tens of thousands of jobs including engineering, planning, manufacturing and construction roles.   

Heat network zones use data to identify the best spots and help to plan and build the technology at scale. They require suitable buildings, such as hotels and large offices, to connect when it is cost-effective for them to do so.  

Minister for Energy Consumers Miatta Fahnbulleh said: 'Heat network zones will play an important part in our mission to deliver clean power for the country, helping us take back control of our energy security. As well as energy independence, they will support millions of businesses and building owners for years to come, with low-cost, low carbon heating – driving down energy bills.

'The new schemes will provide heating using trailblazing sources. Excess heat from data centres – which would otherwise be wasted – will provide heating in the Old Oak and Park Royal Development, while the system planned in Leeds will take heat from a nearby glass factory to warm connected buildings.

'The six selected towns and cities are part of the government’s plan to accelerate the delivery of heat networks across England in areas where zones are likely to be designated in the future. The learnings from these pilots will inform the work to reduce bills, enhance energy security, and achieve net zero by 2050.'

Philip Kaye, co-founder of Manchester-based data centre firm Vespertec, has long been a staunch advocate for a wide government-backed rollout of this technology to support communities and cut the industry’s carbon footprint. He said: “These heat network zones are a great way for data centres to give back to local communities. The most effective way to capture heat is by using liquid cooling. Historically most data centres relied on air cooling. As servers become more powerful, liquid cooling will become a mainstream technology especially with AI servers. For example, Nvidia’s NVL72 requires liquid cooling. 

“Liquid cooling is more efficient than air-cooling, meaning liquid cooled data centres can achieve a lower PUE (Power Usage Effectiveness) making them more sustainable. The environmental impact can be further reduced if the waste heat is reused. This can be done by redirecting the heated liquid and using it for another purpose such as heating a building or any other infrastructure. 

“Liquid cooling could be either direct liquid cooling or immersion servers. We’ve recently seen an exciting scheme using immersion cooling. The project from Deep Green involved totally submerging servers in dielectric fluids and using the waste heat to heat a local swimming pool.  Data centres should not be daunted by the requirements for liquid cooling. Retrofitting is not as complicated as it sounds and should provide opportunities for local innovators to help bring the benefits of modern tech to their communities. 

“We’re delighted to see our town of Stockport selected for this programme, and looking forward to seeing more of these schemes open up across Greater Manchester and the UK.”