Kajaani, Finland – Borealis Data Center and public utility Loiste Lämpö Oy have signed an agreement to recover and reuse waste heat generated by Borealis Data Center’s campus in Kajaani. The partnership enables full-scale integration of waste heat recovery into the local district heating network.

Once operational, the system will recover and repurpose heat from Borealis’ high-performance computing operations and transfer it to Loiste’s nearby heat pump facility. There, the thermal energy will be converted into usable heat for homes and businesses in the Kajaani region.

Borealis Data Center will provide the waste heat as a part of its commitment to sustainability and the region. The system is expected to be up and running by May 1, 2026. The system design and investment specifications were developed in collaboration with engineering and consulting firm Sweco, whose analysis helped ensure a technically sound and cost-efficient approach to integrating waste heat into the district heating network.

"Data centers are critical infrastructure, and when done right, they can contribute directly to the communities around them in a positive manner,” said Björn Brynjúlfsson, CEO and cofounder of Borealis Data Center. “This partnership shows how industrial byproducts like waste heat can be transformed into everyday value for local residents and businesses.”

Situated near the LUMI supercomputer and Finland’s academic research infrastructure, the Kajaani campus is strategically located to serve institutions engaged in data-intensive science and innovation. The site itself was designed with sustainability at its core, repurposing part of a former paper mill and incorporating locally sourced, environmentally friendly CLT (cross-laminated timber) structures. It benefits from Finland’s reliable supply of renewable energy, making it one of the region’s most environmentally conscious computing facilities.

"This supports Loiste's strategic goal of reducing emissions so that the district heating we offer to our customers is as low-emission as possible," says Marko Saviniemi, Business Director at Loiste. The waste heat from the data center utilized by heat pumps not only reduces emissions but also diversifies local heat production in a way that benefits everyone."

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