Nordic colocation provider atNorth has begun delivering waste heat from its FIN02 data center in Espoo, Finland, to a nearby retail site operated by Kesko Corporation.

The waste heat agreement was originally signed in April of last year and is expected to cover almost all of the Kesko store’s heating requirements.

“As demand for AI-ready digital infrastructure continues to grow, it is essential that data centers scale responsibly,” said Erling Gudmundsson, COO of atNorth. “This project demonstrates how data centers can become active contributors to local energy systems. By recycling excess heat, we can reduce our clients’ environmental footprint while supporting our partners’ sustainability goals and delivering tangible benefits to the surrounding community.”

The system works by capturing surplus heat generated by the data center and redirecting it to the neighboring store. According to the companies, the setup reduces the store’s reliance on district heating and lowers associated emissions.

According to Kesko, the recovered heat is expected to reduce emissions associated with district heating by around 200 tonnes of CO2 equivalent annually. This represents a small but measurable share of the company’s overall heating-related emissions, an area it has identified as a key focus in its decarbonization efforts.

“Reducing emissions from the heating of our properties is a key priority within our sustainability strategy,” said Antti Kokkonen, director of Energy at Kesko. “Through this collaboration with atNorth, we are able to significantly cut emissions at one of our stores while demonstrating how innovative partnerships can accelerate the transition to lower-carbon operations.”

The project reflects a broader trend of data centers integrating with local energy systems, particularly in Nordic markets where district heating infrastructure is well established. atNorth has signed several similar agreements across the region.

These include a waste heat agreement with Vestforbrænding, Denmark’s largest waste-to-energy company, to supply excess heat from its DEN01 data center campus to Vestforbrænding’s district heating network in Copenhagen, Denmark. Another notable deal came in November 2024, where it partnered with AgTech startup Hringvarmi to recycle excess heat from its ICE03 data center in Iceland for use in food production.

In February, atNorth was acquired by Equinix and the Canada Pension Plan Investment Board (CPP) in a $4.2 billion deal from Partners Group. Under the agreement, CPP will put $1.6bn of its funds into the company, and own 60 percent of the company’s shares, with Equinix taking the other 40 percent. The total financing package behind the deal is worth $4.2bn, underwritten by a group of European and Canadian lenders.