Cascaded Waste-Heat Valorization in Data Centers Through an Exergy-Economic Framework

The rapid growth of graphics processing unit (GPU)-accelerated AI workloads has made data centers significant sources of medium-grade waste heat, creating both a sustainability challenge and an urban decarbonization opportunity. This paper presents the Cascaded Exergy-Economic Valorization (CEEV) framework, a three-stage system that converts data-center waste heat through (1) an organic Rankine cycle for GPU liquid-cooling loops at 65–85 °C; (2) a transcritical CO2 heat pump, upgrading residual heat to 75–90 °C; and (3) thermochemical energy storage using SrBr2·6H2O for seasonal heat banking. The framework introduces two metrics: the Exergy Value Index (EVI, $/kJ) and the Levelized Cost of Stored Heat (LCSH, $/kWhth). Results for a 10 MW liquid-cooled data center across three climate zones show cascade exergy utilization of 31.2–38.7%, operational cost reductions of 15–25%, 20-year NPV of $2.2–8.4 million, and payback periods of 5.8–7.8 years. The simpler HP (heat pump) +TCES (thermochemical energy storag) configuration achieves higher deterministic Net Present Value (NPV) because it preserves the full waste-heat temperature for the heat pump; however, the full three-stage cascade becomes preferable when electricity prices exceed approximately $50/MWhe, when revenue diversification is valued, or when real-options flexibility is important. Real-options analysis shows that traditional NPV undervalues cascaded waste-heat recovery investments by 18–32%. Even without carbon credit revenue, NPV remains positive at $1.6–6.1 million, confirming that district-heating sales and electricity revenue alone can support investment. The CEEV framework advances sustainable data-center development by providing quantifiable tools for waste-heat performance assessment, supporting policy instruments such as the EU Energy Efficiency Directive and the German EnEfG, and aligning with SDGs 7, 9, 11, and 13.