Fortum and Microsoft's data centre project advances climate targets

Data volumes and digitalisation are growing everywhere. To accommodate this, data centre operators are looking for the best locations to build more data centres. In the Finnish capital region, Fortum and Microsoft plan to take sustainability to an entirely new level by heating buildings with excess heat from new data centres. This will reduce emissions from heating on a massive scale.

Fortum and Microsoft join forces for sustainable development Read the press release

Data centres provide heat to district heating customers

In the Espoo Clean Heat programme, Fortum’s district heat in Finland will be produced coal-free by 2025 and carbon-neutrally before 2030. A significant part of the programme’s targets can be achieved by utilising the waste heat from Microsoft's large-scale data centres.

In terms of climate change mitigation and energy efficiency, it makes most sense to locate large data centres in places where the waste heat generated by the cooling of the servers can be captured and used, for example, for district heating to as many customers as possible. Therefore the location of the data centres require proximity to a district heating network, a large enough plot, access to a secure supply of carbon-neutral electricity and a strong data network.

The locations of Microsoft's data centres were chosen with this in mind. Microsoft is planning to build a data centre region in the cities of Espoo and Kirkkonummi, where it can eventually provide 40 percent of all district heat needed in the area. Recycling excess heat from emissions-free electricity used by the data centres will significantly mitigate the region’s total emissions and helps to keep district heating price competitive.

The project is one of a kind: there is no data centre heat recovery concept of a similar scale anywhere else in the world.

Transferring excess heat from data centres to buildings

How it works: Recycling excess heat from data centres
Data centre Principle of recycling waste heat

Data centre project benefits:

Low emissions
Reduces emissions from heating
Energy market data
Supports the economy and employment
Society and people
Increases recreational opportunities

Emissions-free electricity makes district heating cleaner

Fortum already produces district heating by utilising the waste heat from Espoo’s waste water treatment process and from three smaller data centres. Microsoft's planned data centres would enable the phase out of all coal and some gas in the region’s district heating network.

Microsoft along with other leading data centre operators also aim to reduce their own carbon footprint – and the easiest way to do that is by using zero-emission electricity. If waste heat from data centres is available for use in district heating network, fossil fuel-based heat can be replaced with heat from clean electricity, and the overall role of clean electricity grows. This increases not only Fortum's but also Microsoft's sustainability even further.

The planned data centres require plenty of secure electricity and will have a direct power supply from Finland's electricity transmission grid, provided by Fingrid.

Important project for the regional wellbeing

Microsoft's data centre region not only supports climate targets but also further digitization of businesses and the whole society. They enhance local employment as well. Massive data centre investments will create local jobs and new training opportunities. A large data centre typically employs directly 100-300 people with various educational backgrounds. Indirectly, the number of new jobs is manifold – and even higher during the construction phase.

Biodiversity is extremely important for Fortum, Microsoft and the cities of Espoo and Kirkkonummi. Great efforts have been made to accommodate biodiversity needs and new development as sustainably as possible. Recreational areas have also been maintained or even improved around the data centre region.

Read more about data centres

Aerial photo of Keilalahti in Espoo, Finland

Data centres and district heating – a perfect match

We are at the intersection of two global megatrends: digitalisation and the energy transition. The demand for cloud services keeps growing and new data centres are built around the world at an increasing pace. At the same time, we seek new solutions to replace fossil fuels across the energy system, as well as in other areas. In achieving carbon neutrality in the energy system, the concept of circular economy is particularly attractive.

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Woman on laptop

How do data centres impact the climate?

Data volumes are growing exponentially worldwide, and the use of cloud services is on the rise. This will quickly expand the need for powerful data centres. Finland has excellent opportunities to mitigate the climate impacts of digitalisation: we can offer data centres clean electricity and use the waste heat generated by the centres to replace coal-based heat production.

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Aerial photo of Espoo

Espoo Clean Heat

Fortum and the City of Espoo have committed to carbon-neutral district heating during the 2020s in the network that operates in the Espoo, Kauniainen and Kirkkonummi regions. The development work has since been accelerated with an intermediate goal to discontinue the use of coal in 2025. The accelerated project for carbon-neutrality in 2020's is called Espoo Clean Heat.

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Contact us

Antti Kaikkonen

Head of Strategy Deployment, Generation

antti [dot] kaikkonen [at] fortum [dot] com

Ilkka Toijala

Director, Industrial Heat Recovery Business

ilkka [dot] toijala [at] fortum [dot] com