The selected places will now draw up plans to recycle excess heat – generated for example by data centres or from factories – to enable the heating of surrounding buildings.

The ground-breaking schemes in Leeds, Plymouth, Bristol, Stockport, Sheffield, and two in London will receive a share of nearly £6m of government funding to develop pilot plans.

Construction is expected to start from 2026. This will help to create tens of thousands of jobs including engineering, planning, manufacturing and construction roles.

Excess heat from data centres will provide heating in the Old Oak and Park Royal Development, while the system planned in Leeds will take heat from a nearby glass factory to warm connected buildings.

Types of buildings that could connect to a network include those that are already communally heated, and large non-domestic buildings over a certain size, such as hospitals, universities, hotels, supermarkets, and office blocks.

CEO of the Association for Decentralised Energy Caroline Bragg said:  “We are delighted to see Government maintaining its support for the heat network sector.

“Heat network zones are crucial for a just transition for our communities – putting the UK on the lowest cost pathway to decarbonising our heat, attracting more than £3 of private investment for every £1 of public funding given and creating tens of thousands of local jobs.

“As we begin to deliver zoning at scale, it is crucial that the Government and industry continue to work together to ensure heat networks can truly unleash their potential. “