Company
A data centre with no building of its own.
Instead of one large facility, HeatLoop deploys company-owned compute racks across many host sites and operates them remotely as a single virtual data centre. Each site contributes what a data centre would otherwise have to build: a connection, a space, and somewhere for the heat to go.
Three revenue lines per rack
Compute rental
GPU capacity sold for AI training, inference and rendering through compute marketplaces and direct B2B contracts. This is the business; the rest is what makes it cheaper to run than the alternative.
Heat supply
Recovered heat sold to the host building at a fixed €50/MWh under long-term offtake agreements. Below district-heating and gas prices for the buildings we target.
Grid balancing
Interruptible, checkpointable batch capacity offered into Elering's frequency-reserve markets through a licensed balancing-service provider. FCR capacity averaged €62/MW·h over Jun 2025 – Jun 2026.
The capital model is straightforward: HeatLoop funds racks, compute hardware and heat-node build-out, and carries maintenance and electricity as operating cost. Host sites contribute space and connection rather than capital, which is what keeps the deployment cycle short compared with building a facility.
Market
Compute demand is global. GPU-as-a-service is estimated at roughly $5bn in 2024–25 and growing fast, and EU-hosted capacity carries an additional advantage for customers with data-residency requirements.
Heat demand is local. Estonian district heating alone supplies several TWh a year. Our addressable slice is narrower than that headline — commercial buildings and light industry with year-round hot-water demand, currently on district heat, gas, oil or resistive electric heating.
Grid flexibility is new. The Baltic frequency-reserve markets opened on 4 February 2025, days before the Baltics desynchronised from the Russian grid, with aFRR following in April 2025. Elering now procures reserve capacity locally, and flexible load is what these markets are short of.
- Day-ahead electricity, average
- €83/MWh
- Cheapest 12 hours, average
- €49/MWh
- Grid fee
- €42/MWh
- Tallinn district heat
- €77.82/MWh
- FCR capacity
- €62/MW·h
- aFRR capacity, upward
- €44/MW·h
- mFRR capacity, upward
- €25/MW·h
Nord Pool day-ahead and Elering balancing-capacity results, twelve months to June 2026. Prices ex-VAT. Figures are historical and not a forecast.
Roadmap
- Phase 1 · Aug – Oct 2026
MVP heat node
First host site. Validates the heat loop end to end — capture, transfer and metering into a live building circuit.
- Phase 2 · Nov 2026 – Feb 2027
First production rack
A fully populated ~40 kW rack in commercial operation, selling compute and heat under contract.
- Phase 3 · 2027
Grid services
Interruptible capacity registered into Elering frequency-reserve markets through a licensed balancing-service provider.
- Phase 4 · 2027 – 2028
Pilot line
Multi-site deployment across Estonia, subject to innovation-grant co-funding and a seed round.
Funding position
HeatLoop is privately funded. Committed capital covers the MVP heat node and the first pilot rack. Scale-up beyond that is planned through Estonian and EU innovation grant co-funding — application November 2026, decision expected in the first half of 2027 — and, once the pilot is proven, a seed equity round. No debt financing is planned for the first year.
How the model was built
The commercial case rests on twelve months of Estonian electricity, heat and balancing-market data, assembled from metered building consumption and published market results rather than vendor estimates. Candidate host sites are assessed against their own metering before any offer is made, which is also why we can say plainly where the model does not work.
Company details
- Name
- HeatLoop OÜ
- Legal form
- Osaühing (OÜ) — Estonian private limited company
- Registry code
- 17500385
- Country of operation
- Estonia
- Industry
- Data-centre infrastructure and energy services
- Contact
- info@heatloop.com
Partners, press and investors
For the full business plan, financial model or the underlying market data, get in touch directly.
info@heatloop.com