in eastern europe they pump hot water directly to homes . it’s waste water from nearby power stations . you could do the same from the data center to homes
most datacenter's will recycle their water. Heat it up, send it somewhere else to cool down, send it back to heat up. Specific datacenters were called out on here last week for dumping heat waste water. The efficiency of moving hot water over long distances doesnt make much sense
my point is that it's commonly used e.g. in Finland & Russia, so someone has figured out how to get hot water from outside the city into the city and heat homes.