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Scandinavian Data Centers signs 25-year agreement on waste heat recovery

Scandinavian Data Centers signs 25-year agreement on waste heat recovery
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Scandinavian Data Centers
updated: 22-07-2026 | 10:28
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Data center operator Scandinavian Data Centers and local energy company Eskilstuna Energi och Miljö (translated: Eskilstuna Energy and Environment) have signed a 25-year agreement on the recovery of residual heat from the new data center in Eskilstuna. The collaboration enables the recovery of up to 10 MW of heat in the long term and contributes to a more resource-efficient and flexible district heating system.

 

Over the past year, the parties have developed a long-term model that optimizes the recovery and use of residual heat over time so that the heat becomes a resource in the local district heating system. 

 

The data center is being built in a cave facility with historical roots that is now getting new life. Construction is ongoing and the first stage is expected to be ready by the end of 2026. The supply of residual heat will begin when the facility has capacity to generate a sufficient amount of heat for the district heating network.

 

"The collaboration with Eskilstuna Energi och Miljö is a clear example of how data centers can be part of the social structure and create benefits in several ways, instead of becoming a burden", says Simon Angeldorff, Co-CEO at Scandinavian Data Centers.  

 

Ellinor Grape, Sustainability Lead at Scandinavian Data Centers, adds: "The electricity used in the servers in a data center is converted into heat. By recycling it, we can make digital infrastructure a resource for the local energy system and contribute to a more circular energy use."

 

In the long term, residual heat of up to 10 MW can be used, which provides an important addition to the district heating system at the same time as it contributes to a reduced need for other heat production and gives the system increased flexibility.

 

"We see this as a good opportunity to strengthen our, and Eskilstuna's, environmental work. It is initially a small part of our heat production, but still an important part that gives us clear system benefits. In the long run, it can also contribute to greater customer benefits through a more robust and durable district heating system. We look forward to the collaboration with SDC and it will be exciting to follow how this develops", says Magnus Eriksson, CEO of Eskilstuna Energy and Environment.

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