Large data centres and industrial plants in Quebec produce a significant amount of unused heat. Until recently, most of this energy went to waste. The Waste Heat Recovery — Stream 2: Infrastructure Implementation grant from the Quebec government now covers up to 75% of project costs. This support helps energy-intensive businesses. They can build heat recovery networks.
This funding is a good fit if your facility runs 24/7, produces steady heat, and is close to buildings or infrastructure that can use the extra heat. If you have neighbours such as commercial buildings, housing, or municipal facilities, this grant could help you share your excess heat in a way that benefits your community.
Waste Heat Recovery — Stream 2 is a provincial grant. It helps pay for building the equipment and networks needed to recover and distribute waste heat. The goal is to use leftover heat from industry or data centres as useful energy for other users.
This grant supports construction and infrastructure projects. It does not cover pilot projects or early planning studies.
To qualify, you must own or operate the infrastructure needed to build and run a heat network. Eligible applicants include:
Your project must connect at least one heat source to at least one user through a physical network.
This grant covers costs related to building and installing the heat recovery system. Eligible expenses include:
Ongoing operating costs after construction are not covered.
You can use tools like GrantHub’s eligibility matcher to check if your project and expenses fit Quebec’s funding rules for infrastructure. GrantHub also provides updates on similar programs across Canada.
The program supports waste heat from:
If your facility produces steady, recoverable heat and can send it to outside users, you likely qualify.
For data centres, waste heat recovery can:
For industrial sites, it reduces wasted energy and can strengthen ties with nearby communities or industrial parks. Since the funding cap is high, even large and complex heat networks are possible.
No heat distribution network
The program requires a real heat network linking heat producers and users. If you only reuse heat inside your own facility, you do not qualify.
Including planning or R&D costs
Stream 2 is for building and installing systems, not for early-stage studies. Feasibility studies belong under different programs.
Overestimating internal labour
Internal salaries are allowed, but only up to set limits. Overstating these costs often leads to budget changes.
Not showing nearby heat users
Projects need real, long-term demand for the heat. You must show there are users who will be connected to your network.
Q: Can a data centre be both the heat emitter and network owner?
Yes. Data centres can own and run the heat recovery system, as long as the heat goes to outside users through a network.
Q: Is the $40 million cap per company or per project?
The cap is per project. Large companies can apply for several projects if each one meets the rules.
Q: Are municipal partners required?
No, but having municipalities as heat users or partners can make your project stronger.
Q: Is this funding taxable?
Government grants are usually treated as government assistance for taxes. Check with your accountant to be sure.
Q: Can this grant be combined with other funding?
Often yes, but there are rules. The total government help cannot go over the program’s limits.
If your data centre or industrial facility is planning a heat recovery network in Quebec, this grant could cover most of your construction costs. GrantHub tracks hundreds of grant programs across Canada, including those for energy and infrastructure in Quebec. Before you finalize your budget, check which programs fit your project. You can also sign up for GrantHub alerts to stay updated on new funding opportunities.
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