Ulaanbaatar, the capital of Mongolia, operates one of the world’s largest district heating (DH) systems in the coldest national capital (Heating Degree Days ~5800). Despite serving over 60% of the city’s 1.6 million residents, the current 3rd generation DH system suffers from high thermal losses (~17–18%) and relies on coal-fired combined heat and power plants. Transitioning to 4th generation district heating (4GDH) with lower supply temperatures could reduce these losses while enabling future low-temperature renewable energy integration. This GIS-based spatial heat load density (HLD) analysis uses operational data from the Ulaanbaatar District Heating Company, encompassing 13,500 buildings with a total connected capacity of 3,924 MW. Grid-based spatial analysis was performed at two resolutions (1 km² and 2 km²). Threshold sensitivity analysis was conducted across HLD criteria of 1–5 MW/km². Results indicate that median HLD values exceed the European reference threshold of 3 MW/km², with log-normal distributions confirmed by Shapiro–Wilk tests. Three candidate pilot zones were identified. A hybrid temperature strategy (65/35 °C above −25 °C; 90/60 °C below) further contextualizes the findings. These results suggest spatially favorable conditions for 4GDH development, providing a quantitative foundation for subsequent techno-economic feasibility studies.