As demand for data centers (DC) has increased rapidly, so has their electricity consumption. Cooling DCs is essential to maintain optimal temperatures for the operation of servers and equipment. The consequence of the cooling process is that most of the electricity consumed in DCs, including cooling, is eventually dissipated as heat that is released into the atmosphere without any useful application. Recovering and reusing waste heat offers a sustainable solution to reduce primary energy consumption and minimize the environmental impact. Using waste heat from DCs to heat buildings can significantly improve the energy efficiency and environmental sustainability of DCs. Therefore, this research analyzes the existing potential of waste heat recovery from data centers in Latvia and proposes a system dynamic modelling approach for evaluation of the future impact of waste heat on the national heat supply. The overall waste heat generated by DCs in 2022 was 51.37 GWh at a temperature of 65 °C. By 2050, the total heat energy production potential from DCs will increase to 257 GWh, with 201 GWh being utilized.