Data centres-to-X: Unlocking the value of digital infrastructure in the urban landscape

A hidden opportunity in the digital economy

Data centres sit at the core of modern life, yet physically, they remain largely disconnected from the cities they serve. They are anonymous buildings, often located on the outskirts, designed for efficiency but not for integration. At the same time, they generate something cities increasingly need: usable energy.

According to the EU Energy Efficiency Directive report, data centres produce significant amounts of excess heat across Europe, yet less than 2% is currently reused. At a time when cities are under pressure to decarbonise, strengthen resilience and use resources more efficiently, this represents a major missed opportunity.

For Jonathan Martins, Global Lead Buildings & Cities – Management Consulting at Ramboll, the shift begins with a change in perspective: “We need to move away from building standalone assets and instead integrate data centres as part of the urban development.”

Today, data centres, especially the large ones, are typically located where land is available and cost-efficient, rather than where they can deliver the greatest value. This limits their ability to support surrounding communities and infrastructure. “We think about transport, housing and schools when we plan cities, but not data centres as part of that equation,” says Martins.

One of the clear consequences is the loss of usable energy. Waste heat can only be reused effectively over relatively short distances, meaning that location is critical. When data centres are placed too far from demand, their potential contribution is simply lost. Planned differently, data centres can support local energy systems, contribute to heating networks, and strengthen urban resilience. In this model, they shift from being passive consumers of energy to active components of urban infrastructure.

Designing for integration

Planning determines where value can be created. Design and development determine how.

Most data centres today are inward-looking, single-purpose buildings with limited interaction with their surroundings. However, this model is increasingly being challenged. “There’s no reason a data centre couldn’t be part of a normal building or one secured component within it,” says Katrin Bindner, Director for Urbanism at Henning Larsen.

Emerging approaches, edge data centres, are exploring how data centres can be integrated into mixed-use developments, incorporated into existing buildings or potentially adapted to more compact, vertical forms in dense urban areas. Design is also being used to address environmental performance through green façades, roofs, and water-sensitive solutions.

But data centre integration is about more than appearance. "It’s not only about façades, but also about how they contribute to the city,” adds Bindner. According to her, these decisions shape how data centres interact with their surrounding communities, how effectively they can share resources such as energy, and how communities are involved in the planning process.

Despite clear potential, progress has been limited. “It’s cost, regulation, lack of an off-taker, and often simply the need to build quickly,” says Martins.

Barriers also include the misalignment between data centre locations and energy demand, the need for upfront investment in infrastructure, and the complexity of integrating new systems without compromising reliability. There is also a question about timing. Opportunities for integration are often considered too late in the process, once key decisions have already been made. “Regulation, clear signals from the market, and relevant stakeholders are important so that you think about these things before you place the data centre,” Jonathan continues.

Policy and planning frameworks are beginning to evolve, encouraging more systematic consideration of energy reuse. EU rules require large data centres to assess and report their waste heat potential, while countries like Germany are introducing minimum reuse targets. While these frameworks are gradually turning waste heat from an optional add-on into a planned component of energy systems, unlocking the full potential of data centres at scale will require earlier collaboration between stakeholders. Urban authorities will need to consider their planning system and approach to better incorporate these new digital infrastructure projects through standard procedures and, if needed, through specific ones such as AI growth zones as is the case in the UK for instance.

Looking ahead, the most successful data centres will be defined not only by their technical performance, but by their role within the city.

According to Jonathan Martins, “Data centres should not be seen as something that takes away, but something that contributes”.

This means locating them where they can support surrounding communities, designing them to integrate into the urban fabric and connecting them to energy and infrastructure systems.

“Data centres connected to homes, places of work, bio tech, to neighbourhoods, to the way we live – that’s the real opportunity,” Bindner concludes.

Ramboll hosted an invite-only seminar at SXSW London in collaboration with the London Mayor’s Office on 1 June 2026 discussing the urban integration of data centres. Jonathan Martins was among the roundtable facilitators. To learn more about managing community objections to data centres, explore this article.