A 500 million QScale project in Saint Bruno has been abandoned

A $500 million QScale project in Saint-Bruno has been abandoned due to a lack of electricity

QScale's futuristic data processing center in Saint-Bruno-de-Montarville on Montreal's south shore will ultimately not see the light of day because it was unable to obtain the necessary power, its CEO Martin Bouchard announced.

“Unfortunately, this new QScale campus cannot be realized in the current context after Hydro-Québec and the Ministry of Economy, Innovation and Energy (MEIE) recently made an unfavorable decision regarding our food needs,” explained Martin Bouchard on the social network LinkedIn on Monday.

“We are aware of the energy challenges facing Quebec, but we cannot hide our disappointment,” he added.

In its statement, QScale regrets that it has not been able to implement its partnership with Énergir and the city of Saint-Bruno-de-Montarville to recover heat from its center to “heat several thousand new housing units in an environmentally friendly and affordable way.”

For its part, the city of Saint-Bruno indicated that it had taken note of Mr. Bouchard's statement today.

“Although she is disappointed, she understands that this is a complex matter and respects the government's decision,” said Martine Verdon in response to messages from the municipality.

The MEIE explains

When asked by Le Journal, the Ministry of Economy, Innovation and Energy (MEIE) recalled that “the granting of electricity blocks takes into account Hydro-Québec's technical connection capacities and is based on a multi-criteria benefit analysis”.

“The decisions regarding the projects in the group currently analyzed will be made in spring 2024. However, the promoters of certain projects could be informed of the decision earlier if their project is rejected at the technical capacity summary analysis phase,” it explained spokesman Jean-Pierre D'Auteuil.

For its part, the state-owned company recalled that last year an industrial project selection process was introduced for any industrial project larger than 5 megawatts (MW) that wants to be supplied with electricity by Hydro-Québec.

“Hydro-Québec carries out an analysis of the projects based on their technical connection capacity. “Based on this technical assessment, the project cannot be implemented in accordance with the selection process for industrial projects carried out by the Ministry of Economy, Innovation and Energy,” said Hydo spokeswoman Cendrix Bouchard.

“It surprises us a little”

In November 2022, Le Journal reported that QScale wanted to open a second campus in Saint-Bruno after that of Lévis, even if it had not yet signed contracts with a first customer.

In an interview with the Journal on Monday afternoon, QScale CEO Martin Bouchard said he was surprised when he received the rejection letter last Thursday.

“We had a promise to buy. There have been studies. We had not moved forward with the plans as we were waiting for a response from Hydro-Québec. Our request for an agreement dates back two years. “It surprises us a little,” he concluded.

–In collaboration with Sylvain Larocque

A THREE QUARTERLY PUBLIC FUNDED PROJECT IN LÉVIS

Government of Quebec

  • 60 million dollars ready
  • $30 million shares
  • $5 Million Note (Loan)

Regional and cooperative capital Desjardins (supported by tax credits)

  • $40 million worth of shares
  • 20 million dollars ready

Private investors (nine Quebecers)

Total: $200 million