Startup using servers to heat homes files for bankruptcy

Young Dutch startup Nerdalize was founded in 2013 with a plan to warm homes using the heat generated from servers, but the innovative company filed for bankruptcy just before the end of the year. The company raised at least 850 thousand euros in a crowdfunding campaign in 2016 after running a pilot program with energy provider Eneco.

The company raised another 750 thousand euros in a second crowdfunding campaign about a year ago, which led to the company winning the Crowdfunding Award last January.

Nerdalize's concept was effectively a decentralized server farm, where servers were placed in people's houses. It meant that data centers did not have to build a dedicated facility, while homeowners would get a portion of their home heating for free.

Back in 2015, company co-founder Boaz Leupe told NL Times customers could save up to 500 euros per year, with demonstration units available free of charge.

Broadcaster RTL Z discovered the bankruptcy, which was declared on December 27. Nerdalize was still posting active job vacancies during the first week of November.

The broadcaster noted that the company was required to repay a portion of two million euros in debt, or convert at least part of the loan into equity. Nerdalize posted a 2017 loss of about 882 thousand euros.

Nerdalize was incubated at YES!Delft, part of the TU/Delft campus.