Waste to Energy power is a great technology, and the conception that the process is smelly is inaccurate. Obviously the input tends to be smelly but so long as the stuff is stored correctly before incineration then there is 0 smell.

The heat produced by incinerators is typically used for heating nearby areas, in particular hospitals, who are quite comfortable with incinerators since most hospitals have them for disposing of medical waste.

I'm not sure if the heat off a data centre could be used similarly, however, you could pump the heat into water (like some solar panels) and use the hot(ish) water in the building.