How Data Center Heat Is Changing the Real Estate Market: Finland’s Experience

Finland has become one of the first European countries where digital infrastructure directly affects the residential real estate market. Excess heat generated by data centers, bitcoin mining farms, and AI computing facilities is increasingly used to heat residential neighborhoods, apartment buildings, and public facilities.

This approach is transforming not only the energy sector but also housing economics, reducing operating costs and increasing the attractiveness of residential properties for buyers and tenants.

Data centers as part of urban infrastructure

During continuous operation, servers and ASIC mining equipment generate large amounts of heat. In Finland, this excess energy is captured using heat pumps and fed into district heating networks.

As a result, data centers effectively function as alternative heat sources comparable to traditional boiler plants — without burning fossil fuels. This model is particularly valuable for densely populated residential areas.

A notable example is the town of Mäntsälä, where a 75 MW data center supplies heat to a significant portion of the community. For residents, this translates into more stable heating costs and reduced exposure to energy price volatility.

Impact on property values and utility costs

For the real estate market, the main advantage lies in lower and more predictable heating expenses. Residential buildings connected to such systems are generally more attractive to both buyers and renters.

Energy-efficient housing tends to:

• sell faster;

• achieve higher rental demand;

• retain value better during energy or economic crises.

In Northern Europe, these features are increasingly becoming a standard requirement for new residential developments.

The role of bitcoin mining in residential heating

Bitcoin mining companies play a significant role in Finland’s heating model. Operators such as Hashlabs, Terahash, MARA, and MinersLoop use water-cooled ASIC miners, with the generated heat delivered directly into municipal heating systems.

According to industry estimates, this model already provides heating for approximately 140,000 people — around 2.5% of Finland’s population. Hashlabs alone supplies heat to a city of about 50,000 residents and continues to expand its operations.

Modern mining equipment can heat cooling water up to 70°C, making it suitable not only for residential heating but also for commercial real estate and public buildings.

Why developers and municipalities are interested

For real estate developers, integrating data center heat into residential projects offers several advantages:

• reduced capital expenditures on standalone heating systems;

• simplified connection to district heating networks;

• compliance with sustainability and ESG standards.

Municipalities benefit from a stable heat source and an additional incentive to develop residential areas near technology hubs.

Can this model work elsewhere?

While some regions impose strict limitations on bitcoin mining, Finland’s experience highlights an alternative approach — one where digital infrastructure supports sustainable real estate development.

For countries with cold climates and dense urban housing, this model could become a key tool for reducing utility costs and improving the long-term investment appeal of residential properties.