Octopus Energy’s generation arm is investing £200 million into a company which provides free heating to organisations by reusing heat from data centres.
The funding will help London-based technology firm Deep Green to rapidly scale its technology, which is already being used at institutions such as the University of York, across the UK.
Under Deep Green’s business model, heat generated via data processing is used to heat energy-intensive organisations such as leisure centres. Octopus explained that by using Deep Green’s services, a public swimming pool in Devon was able to cut its pool heating bill by more than 60%.
“In return, Deep Green gets free cooling which provides it with a significant competitive edge over traditional data centres. This allows it to offer more affordable, highly energy-efficient computing to businesses across the UK,” Octopus added.
The data centres are installed on-site and do not require additional grid upgrades or planning permission so can be up and running in a matter of weeks.
Octopus Energy Generation’s investment is being made via the Octopus Energy Transition Fund (OETF) and the Sky (ORI SCSp) fund it manages.
Zoisa North-Bond, chief executive of Octopus Energy Generation, said: “To tackle the energy crisis head-on, we need innovative solutions to unusual problems. By using excess heat from data centres to slash energy bills for communities across the UK, Deep Green solves two problems with one solution.
“We’re looking forward to them rapidly rolling this out and positively impacting even more people as we drive towards a cleaner, cheaper energy future.”
Mark Bjornsgaard, founder and chief executive of Deep Green, said: “We are thrilled with Octopus’s commitment to support our next phase of growth. Placing data centres within the fabric of society transforms the waste heat they produce into a valuable resource that benefits communities.
“The data centre sector is rightly facing scrutiny about its growing energy demand and associated carbon emissions. Our data centres are highly energy efficient and support local communities with free heat.”
For more on the potential and challenges of recovering heat from data centres, click here to access Utility Week’s latest Digital Weekly issue.