Integration of Data Centers as Active Entities into Energy Systems Modeling

Energy system models allow exploring new interactions between energy supply and demand that new actors within the system enable. Data centers (DC) are such actors, becoming significant energy consumers in some regions while pressuring local energy systems, but also having the potential to contribute to the energy transition by providing demand response and waste-heat recovery. Yet, no past studies have investigated how these attributes can support energy system decarbonization. This article describes the integration of large DCs as an extension to the Balmorel energy system model, jointly optimizing their cooling portfolio along with the electricity and the district heating systems. The model allows DCs to invest in flexible-cooling and waste-heat technologies while competing freely with other traditional generators within the system. This article showcases a simplified example of DCs’ potential in the Danish energy system through 2035. The results show that waste heat accounts for 9% of the national heating supply, leading to system-wide emission reductions of 0.8% in 2025 and cost savings of up to 3.0% in 2035. In the future, this model will be used for policy research to align the incentives of DC operators and society.