British renewable energy group Octopus Energy has invested £200 million ($255m) in data center business Deep Green.

UK-based Deep Green specializes in siting small data centers near locations that need waste heat.

– Deep Green

The company last year deployed an immersion-cooled data center to heat a Devon swimming pool.

"To tackle the energy crisis head-on, we need innovative solutions to unusual problems," Zoisa North-Bond, CEO of Octopus Energy Generation, said.

"By using excess heat from data centers to slash energy bills for communities across the UK, Deep Green solves two problems with one solution. We’re looking forward to rapidly rolling this out and positively impacting even more people as we drive towards a cleaner, cheaper energy future.”

The investment was made through Octopus’ dedicated Octopus Energy Transition Fund (OETF) and the Sky (ORI SCSp) fund it manages.

A spokesperson for the company told DCD that Octopus won't initially be involved in siting Deep Green digital boilers at this stage.

"Octopus will be involved in the business (and have seats on the board)," DCD was told. "Octopus, as well as investing in renewable energy, is also interested in businesses that are decarbonizing the economy with innovative tech ready for rapid roll-out. "

Last year, Octopus' Transition Fund joined with Legal & General Capital to invest £70 million in ground-source heat pump maker.

The company recently sold the fiber business it picked up when it acquired Shell Energy Retail UK.

“We are thrilled with Octopus’s commitment to support our next phase of growth," Mark Bjornsgaard, founder and CEO of Deep Green, said.

"Placing data centers within the fabric of society transforms the waste heat they produce into a valuable resource that benefits communities."

On LinkedIn, he added that the deal would allow the company to build "hundreds of Edge data centers within pools and district heating systems."

The company was awarded the Editor's Choice Award at last year's DCD Awards.