Milan draws heat from Equinix data centres

Milan data centre campus will heat 21,000 homes from 2026

Equinix has partnered with A2A to capture waste heat from its Settimo Milanese data centre campus and feed it into Milan’s district heating network. The scheme will supply up to 225 GWh of thermal energy each year. Consequently, it will heat more than 21,000 homes and avoid 345,000 tonnes of CO₂ emissions annually.

This project represents one of Europe’s largest data centre heat recovery schemes outside Scandinavia. Moreover, it shows how digital infrastructure can directly support urban carbon reduction. Instead of releasing thermal energy into the atmosphere, the system channels it into existing city heating networks.

A2A is Italy’s second-largest energy operator. The company specialises in district heating and circular economy solutions. Equinix provides global data centre and interconnection services. Together, they are building infrastructure that turns a byproduct into a resource.

The partnership follows similar initiatives Equinix has launched in Helsinki, Paris, and Markham in Ontario. However, the Milan project operates at a significantly larger scale. It will increase A2A’s district heating output by roughly 20 per cent.

A2A builds new energy centre with 72 MW heat pump capacity

A2A is constructing a dedicated energy centre near Settimo Milanese. The facility will house four industrial heat pumps with a combined capacity of 72 MW. In addition, two thermal storage systems will hold 6,000 cubic metres of water.

These heat pumps will capture thermal energy from Equinix’s data centre operations. The captured heat will then be transported through new infrastructure connecting to Milan’s existing district heating network. Therefore, homes across the city will receive heat that would otherwise be wasted.

Equinix will design and manage the heat export system within its campus. The company will work with its data centre customers whose IT equipment generates the thermal output. Specifically, servers and processing equipment produce consistent heat during normal operations.

The partnership was announced on 2 July 2026 in a joint press release from Milan. The first heat supply is scheduled for the 2026 to 2027 winter season. Full operational capacity of 225 GWh per year should follow shortly after initial commissioning.

A2A plans to expand Milan’s district heating network to distribute the recovered heat more widely. The system will serve residential areas from the city centre to outer districts. Furthermore, it will supply heat to landmarks including the Duomo and Palazzo Reale.

Partnership follows proven models in Helsinki and other European cities

Equinix has operated heat export projects since 2010. The company’s Helsinki data centre has supplied waste heat to utility provider Helen for over a decade. That scheme has successfully heated thousands of Finnish homes throughout multiple winter seasons.

Similar partnerships now operate in Paris and Markham. However, Milan’s project exceeds these earlier initiatives in scale and capacity. It demonstrates how heat recovery technology can adapt to different urban contexts and heating infrastructure.

The Milan system uses established heat pump technology. Industrial heat pumps raise the temperature of captured thermal energy to levels suitable for district heating networks. This process requires electrical input but remains far more efficient than generating heat from fossil fuels.

District heating networks distribute hot water through insulated underground pipes. Buildings connect to these networks instead of operating individual boilers. As a result, cities can supply heat more efficiently and switch sources without requiring changes to individual properties.

A2A operates extensive district heating infrastructure across northern Italy. The company’s existing network provides the foundation for integrating data centre heat recovery. Consequently, the technical and commercial arrangements could be implemented relatively quickly.

Milan scheme will avoid 345,000 tonnes of CO₂ each year when operational

The project will prevent more than 345,000 tonnes of carbon dioxide emissions annually. This figure represents the emissions that would result from generating equivalent heat through conventional means. Essentially, it equals the carbon absorption of approximately 220,000 trees over the same period.

UK businesses watching European developments should note several commercial implications. Data centres consume substantial energy for cooling and often release heat as waste. However, recovering this heat creates value and reduces overall energy system costs.

For manufacturers and logistics operators, the Milan project illustrates potential applications beyond data centres. Industrial processes generate waste heat that could similarly feed into district heating networks. Therefore, facilities near urban areas might explore comparable partnerships with local energy providers.

Public sector suppliers face increasing pressure to demonstrate environmental credentials. Projects like Milan’s heat recovery scheme show how infrastructure can serve multiple purposes. As a result, businesses involved in urban development or energy projects may need to consider heat recovery in their proposals.

Carbon reporting requirements continue to expand for UK companies. Scope 2 emissions include purchased heat and electricity. Consequently, accessing low carbon heat sources helps reduce reported emissions. Businesses operating in areas with district heating networks should investigate available supply options.

Supply chain scrutiny extends to the environmental performance of service providers. Companies using data centre services may soon ask about heat recovery and energy efficiency. Therefore, understanding how providers manage waste heat becomes commercially relevant when selecting digital infrastructure partners.

Tender processes for public contracts increasingly require carbon reduction evidence. Demonstrating that your operations contribute to circular economy principles can strengthen competitive positions. For example, facilities that supply waste heat to local communities show tangible environmental benefits beyond standard efficiency measures.

Scale and timeline of the Settimo Milanese heat recovery system

The following details summarise the Milan project’s key specifications and expected outcomes:

• Annual thermal energy recovery will reach 225 GWh once the system operates at full capacity.
• More than 21,000 homes will receive heating through the expanded district heating network.
• Carbon dioxide emissions will fall by over 345,000 tonnes each year compared to conventional heating methods.
• A2A’s district heating output will increase by approximately 20 per cent across the Milan area.
• Four heat pumps with combined capacity of 72 MW will process the recovered thermal energy.
• Two thermal storage systems holding 6,000 cubic metres of water will balance supply and demand.
• The partnership was announced on 2 July 2026 with first heat supply planned for winter 2026 to 2027.
• The project ranks among Europe’s largest data centre heat export schemes outside Nordic countries.

Equinix focuses on community benefit rather than heat revenue

Equinix has stated it does not seek income from exported heat. Instead, the company views heat recovery as a community contribution. Data centres already purchase energy to power IT equipment. Using the resulting thermal output benefits local residents without additional resource consumption.

Emanuela Grandi, Managing Director of Equinix Italy, explained the approach clearly. She noted that excess heat results from the processing power needed for digital services and artificial intelligence. Redistributing this heat to surrounding areas creates value for communities while reducing total energy needed for heating.

This model differs from traditional energy projects where heat sales generate revenue. However, it aligns with growing expectations that large infrastructure operators should contribute to local sustainability goals. For businesses, this reflects a shift in how environmental responsibilities are understood.

Companies operating energy-intensive facilities may face similar expectations. Local authorities and communities increasingly expect industrial sites to minimise environmental impact. Furthermore, they may request positive contributions such as heat supply or renewable energy generation.

The Milan project demonstrates how infrastructure partnerships can address multiple objectives simultaneously. A2A gains a reliable heat source for its network. Milan residents benefit from lower carbon heating. Equinix strengthens its position as an environmentally responsible operator. Therefore, all parties achieve their respective goals through a single integrated system.

UK businesses should consider whether their operations could support similar arrangements. Manufacturing sites, logistics facilities, and commercial buildings often generate waste heat. While not every location suits heat recovery, exploring opportunities could reveal unexpected value and strengthen stakeholder relationships.

District heating networks enable efficient urban energy systems

District heating works by distributing hot water from centralised sources through underground pipe networks. Buildings connect to these networks instead of operating individual heating systems. Consequently, cities can manage heat supply more efficiently and switch between different energy sources.

Northern European cities have operated district heating for decades. Denmark, Sweden, and Finland use these systems extensively. However, adoption in southern Europe has been slower. Milan’s expansion of district heating infrastructure shows growing interest across different climate zones.

For UK businesses, district heating remains relatively uncommon outside specific developments. Nevertheless, understanding these systems matters because they influence energy strategy in European markets. Companies operating internationally need to adapt to different energy infrastructure in each location.

Heat networks offer several advantages for urban areas. They allow efficient use of waste heat from various sources including industry, power generation, and data centres. Additionally, they can incorporate renewable heat sources such as solar thermal or geothermal energy. Therefore, cities can reduce emissions without requiring individual building retrofits.

The UK government has identified heat networks as important for reaching net zero targets. Several cities are developing district heating schemes. As a result, businesses in urban areas may encounter opportunities to connect to heat networks or supply waste heat in coming years.

Data centres specifically face growing scrutiny over energy consumption and environmental impact. Heat recovery projects provide concrete evidence of environmental responsibility. For companies using data centre services, provider sustainability practices increasingly affect procurement decisions and stakeholder perceptions.

Heat recovery technology applies across multiple industrial sectors

While this project focuses on data centres, the underlying technology works for any heat-generating process. Manufacturing operations frequently produce excess heat that currently goes unused. Industrial sites could potentially supply local heating networks if suitable infrastructure exists nearby.

Heat pumps play a central role in making low-grade waste heat usable. These devices raise temperature levels to match district heating network requirements. Although heat pumps consume electricity, they typically deliver three to four times more heat energy than the electrical input required.

Thermal storage systems address the timing mismatch between heat generation and demand. Data centres operate continuously but heating demand fluctuates with weather and time of day. Storage tanks allow systems to capture heat when available and release it when needed.

UK manufacturers should assess whether their sites generate sufficient waste heat to warrant recovery systems. Facilities near residential areas or existing heat networks present the strongest opportunities. However, even standalone heat recovery can reduce energy costs by preheating process inputs or warming buildings.

Planning applications for industrial facilities increasingly require energy efficiency statements. Demonstrating that waste heat will be captured and used strengthens applications. Similarly, existing sites seeking expansion approvals may find that heat recovery projects improve their environmental standing with local authorities.

Carbon reduction commitments create additional incentives for heat recovery. Companies that use recovered heat reduce their Scope 2 emissions from purchased energy. Those that supply heat to others can claim indirect benefits through community carbon reduction. Therefore, heat recovery projects can support corporate sustainability targets while generating practical operational benefits.

For businesses pursuing environmental certifications or sustainability ratings, heat recovery demonstrates genuine commitment beyond paper policies. It shows investment in physical infrastructure that delivers measurable environmental outcomes. Consequently, such projects strengthen credentials when competing for contracts that prioritise environmental performance.

What UK businesses should consider about waste heat recovery

Companies operating energy-intensive facilities should evaluate their thermal output. Start by understanding how much heat your processes generate and at what temperatures. Next, identify potential uses for this heat either within your operations or externally.

Location matters significantly for heat recovery projects. Facilities near residential areas, business parks, or institutions like hospitals and universities have more options. Urban sites can potentially connect to district heating networks where these exist. Rural sites may need to find on-site applications or partner with nearby facilities.

Economic viability depends on several factors including heat volume, temperature, distance to users, and existing infrastructure. Projects requiring extensive new pipe networks cost more than those connecting to established systems. However, rising energy prices improve the business case for heat recovery investments.

Regulatory requirements continue to evolve around energy efficiency and carbon reporting. Businesses should monitor forthcoming obligations that might make heat recovery more attractive or even mandatory. For example, energy audits may soon require assessment of waste heat recovery potential.

Partnership opportunities exist with local authorities, heat network operators, and neighbouring facilities. Some local councils actively seek industrial heat sources for district heating schemes. Engaging early in these discussions can lead to supported projects with shared infrastructure costs.

Our net zero programme helps businesses identify energy efficiency opportunities including waste heat recovery potential. We work with companies to assess technical feasibility, estimate costs and benefits, and navigate funding options. Additionally, we support carbon reporting requirements that increasingly require detailed energy management evidence.

For businesses in public sector supply chains, environmental performance directly affects tender success. Heat recovery projects provide concrete evidence of sustainability commitment. They demonstrate operational efficiency and community benefit beyond standard compliance measures. Therefore, such initiatives can differentiate your proposals in competitive procurement processes.

European developments signal broader trends in infrastructure sustainability

The Milan project reflects wider European policy directions on energy efficiency and circular economy principles. EU regulations increasingly require member states to maximise use of waste heat. Several countries have introduced requirements for large facilities to assess heat recovery potential.

UK businesses trading with Europe should understand these evolving standards. Environmental requirements in European markets affect product specifications, supply chain expectations, and competitive positioning. Companies demonstrating leadership in energy efficiency maintain stronger positions as standards tighten.

Data centre operators face particular scrutiny given their rapid growth and energy consumption. Industry observers expect heat recovery to become standard practice rather than exceptional. Consequently, data centre customers may soon routinely request information about heat management and community benefit programmes.

The technology demonstrated in Milan is proven and available. Heat pumps, thermal storage, and district heating networks operate reliably across Europe. Therefore, the barriers to similar UK projects are primarily economic and regulatory rather than technical. This suggests opportunities will increase as policy support and energy prices make projects more viable.

For forward-thinking businesses, acting ahead of regulatory requirements creates advantages. Early adopters of heat recovery gain experience, establish partnerships, and build reputations before competitors respond to mandatory standards. Additionally, they influence how requirements are framed by demonstrating practical implementation.

Where to find technical guidance and policy information

The Department for Energy Security and Net Zero publishes guidance on heat networks and energy efficiency requirements. Their resources include technical standards, funding programmes, and policy consultations relevant to heat recovery projects.

The Chartered Institution of Building Services Engineers provides technical guidance on heat network design and heat pump systems. Their publications cover engineering standards and best practice for professionals implementing heat recovery projects.

Local authorities often maintain heat mapping studies identifying potential heat sources and demand centres. Contact your council’s energy or planning department to learn whether district heating schemes are planned for your area. Early engagement can reveal partnership opportunities before formal procurement processes begin.

For businesses seeking carbon reporting and compliance support, we help navigate environmental disclosure requirements including energy management and efficiency reporting. Understanding your thermal output and recovery potential forms part of comprehensive carbon management.

The Association for Decentralised Energy represents the heat networks sector in the UK. They publish market reports, policy analysis, and case studies relevant to businesses considering heat recovery or heat network connections.