Compression heats things up.
Compressed air gets hot. The compression of air in the cylinder of a Diesel engine is used to heat the fuel to ignition. The King of Random here made a clear acrylic "slam rod" fire starter. When he slams down the piston and compresses the gas, it gets hot enough to cause the piece of char cloth tinder he has in there to glow. It is really excellent.
Compressed air piped in already got hot wherever the factory is, and so when you let it decompress it will get cold. But if you use it locally to compress room temperature atmospheric pressure air, that air will get hot.
In the screenshot, the glow is because the char cloth tinder in there is superheated by the hot compressed gas. It glows so hot it catches fire (and you will see in the video it is just then a little cinder) But it is cheating to just have light from burning stuff - that is a torch. How to use the heat of compression to make something glow without burning? Can we just keep it glowing like that?
If you heat something up in the absence of oxygen, it will glow but not burn. This is how incandescent light bulbs work: the filament inside is heated by an electrical current passing through it and it glows.
Depicted: carbon filament incandescent bulb.
Some incandescent bulbs are full of vacuum. Others are full of inert gas - like noble gases or nitrogen. The reason: without oxygen the filament will not burn up, but will just keep glowing.
What if there were a device like the King's slam rod that was repeatedly and rapidly compressed - basically imagine a clear 4 cylinder Diesel engine. The difference: the compressed gas does not contain oxygen. Nitrogen gets just as hot on compression but will not sustain combustion. A piece of carbon in the cylinder will not burn up. It will heat up and glow, just like when he hit the cylinder.
The lighting apparatus working on this principle will have multiple clear / durable cylinders in a row, driven by a compressed air powered drive shaft. The element on the piston in each is heated to glowing by the repeatedly compressed nitrogen. The gentle glow lights the room.