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Optimizing energy consumption in the cities might present a significant impact on decarbonization strategies approaching carbon neutral future in 2050. Positive Energy Block initiative is targeted particularly to densely build environments promoting shared on-site renewable energy production and storage, using smart grids, internet and communication technologies, Internet of Things and other highly advanced energy efficiency technologies within the neighborhoods. Research presented focuses on transition from traditional urban block to Positive Energy Block in valuable environment of historic city center exploring possibilities of waste heat regeneration and on-site renewable energy technologies. Energy consumption data is analyzed and the conception for possibilities of on – site renewable energy generation and waste heat recovery from data centers and cooling units in selected urban block is drawn. The results indicate that very ambitious targets for energy efficiency improvement are needed to achieve positive energy block – 65% and 60% for electricity and heating consumption, respectively. Possible savings of CO 2 emissions are 45–50 kg/m2 per year. • Overall methodology for transition from traditional historic urban block to Positive Energy Block is developed. • Waste heat recovery from data center located within the block is incorporated in decarbonisation strategy. • Preliminary calculation of decarbonisation potential of selected urban block is performed. • After deep renovation 100% of thermal energy and 70% of electricity needed for selected can be covered with on – site RES. • To cover heating and electricity demand, 65% cut of electricity and 60% cut in heating demand is needed in selected block. [ABSTRACT FROM AUTHOR]