How Markham District Energy Works in Markham Centre and Cornell
Neeraj Moolchandani is a top real estate agent in Markham, Ontario. Published November 11, 2026 · By Neeraj Moolchandani, REALTOR®, Cofounder of the Kaizen Real Estate Team, eXp Realty, Brokerage
The short answer
Markham District Energy is a City of Markham owned utility that pipes hot and chilled water from central plants to connected buildings, so those buildings do not need their own large boilers or chillers. It mainly serves Markham Centre towers and Cornell institutional buildings. If you are buying a condo in a connected building, check the status certificate and budget to see how energy costs are billed and what equipment the building still maintains.
Buyers moving into a Markham Centre condo are often surprised to learn their building has no big boiler room. The heat and cooling arrive through underground pipes from a central plant run by Markham District Energy. Our Kaizen Real Estate Team is one of the teams Markham buyers lean on for clear answers like this, so here is how it works and what it means for you.
Looking at a Markham Centre condo? Ask Neeraj what to check in the building's energy setup.
Call (647) 370 8885What District Energy Means in Plain Words
In a typical building, hot water for heating and chilled water for cooling are made on site with boilers and chillers. With district energy, a central plant makes that hot and chilled water and sends it through underground pipes to many buildings. Each connected building uses heat exchangers to move that energy into its own system.
Markham District Energy is owned by the City of Markham. According to ReNew Canada, its largest system, in Markham Centre, started about 25 years ago when IBM Canada located a major data centre there. It now serves nearly 250 buildings totalling 14.3 million square feet, with room to grow toward 40 million square feet.
Markham Centre and Cornell Are Different
Markham District Energy runs two separate systems. The Markham Centre system serves the downtown area, including towers and commercial buildings. The Cornell system, as The Markhamite reports, serves the hospital, community centre, fire hall and nearby medical buildings.
That matters for buyers. Most freehold homes and townhomes in Cornell heat and cool with their own furnace or heat pump, not the district system. If you are buying in Cornell, do not assume a connection. Check the listing, the builder documents or the condo budget.
| Item | Building on district energy | Building with its own plant |
|---|---|---|
| Large boilers and chillers | Not on site; energy arrives by pipe | On site; the corporation owns and replaces them |
| Major replacement risk | Lower for central equipment; in suite units still need care | Boiler and chiller replacements show up in the reserve fund |
| Roof and mechanical space | Less space used by equipment | Rooftop or basement plant rooms |
| Energy costs | Paid under an energy services agreement | Paid through utility bills for gas and power |
| What to review | Agreement term, rate changes, billing method | Equipment age, reserve fund study, service contracts |
Comparing two condo buildings with different heating systems? Neeraj can walk you through the numbers.
Call (647) 370 8885The Low Carbon Upgrade Underway
Markham District Energy is building what Ontario Construction News calls the world's largest wastewater energy transfer project, at its Low Carbon Energy Centre. The system recovers heat from a regional sewer line. ReNew Canada reports it is expected to deliver 18.5 megawatts of heating and 4,000 tonnes of cooling, and to cut thermal production emissions by more than 30,000 tonnes a year.
For owners, the takeaway is simple. The energy source behind connected buildings is shifting toward lower carbon sources, which some buyers value when they compare buildings.
How It Shows Up in Your Condo Costs
In most connected condos, the cost of heating and cooling is paid by the corporation and shared through monthly fees, or measured by suite through a sub metering company. The building still maintains its own equipment inside the walls, such as pumps, heat exchangers and in suite fan coils or heat pumps.
- Ask how heating and cooling are billed: in the fees, by sub meter, or both.
- Read the energy line in the corporation's budget and compare it with last year.
- Ask how long the energy services agreement runs and how rates are adjusted.
- Check the reserve fund study for in suite equipment replacement plans.
- Ask the property manager about service history and any outages.
Want help reading a status certificate before you firm up?
Call (647) 370 8885Our guides on buying a Markham condo and checking a condo's financial health cover the rest of the status certificate review.
Is a District Energy Building a Better Buy?
Not automatically. District energy removes one big category of building equipment and the replacement risk that comes with it. But price, location, the reserve fund, fees, layout and resale demand still matter more for most buyers. Compare buildings on total monthly cost and long term health, not on the heating system alone.
Questions to ask before you buy
- Is this building connected to Markham District Energy?
- How are my heating and cooling costs billed?
- What does the corporation still own and maintain?
- How has the energy line in the budget changed over three years?
- What does the reserve fund study say about in suite units?
Have a question about a specific building? Call Neeraj for a straight answer.
Call (647) 370 8885Questions Markham Clients Ask
What is Markham District Energy?
It is a City of Markham owned utility that supplies hot and chilled water from central plants to connected buildings through underground pipes, so those buildings do not need their own large boilers or chillers.
Which Markham areas use district energy?
Markham District Energy runs a system in Markham Centre that serves nearly 250 buildings, and a separate system in Cornell that serves the hospital, community centre, fire hall and nearby medical buildings.
Do Cornell townhomes use district energy?
Most freehold homes and townhomes in Cornell use their own furnace or heat pump. Do not assume a connection. Check the listing, builder documents or condo budget.
Are condo fees higher in a district energy building?
Not necessarily. Energy costs may be included in fees or billed by sub meter. Compare total monthly cost, and review the budget and reserve fund study for each building.
What is wastewater energy transfer?
It recovers heat from sewage flowing through a regional sewer line and uses it to heat buildings. Markham District Energy is building a large system of this type at its Low Carbon Energy Centre.
Keep Reading
Helpful Pages
Buy Your Next Condo With Confidence
Neeraj helps you compare buildings on what matters: total cost, health of the corporation and resale demand.
Sources: ReNew Canada, The Future is Thermal; Ontario Construction News, Markham District Energy breaks ground; The Markhamite, Big Markham Energy.
Neeraj Moolchandani, REALTOR®, Kaizen Real Estate Team, eXp Realty, Brokerage, 9763 Markham Rd, Markham, ON L6E 1A4. (647) 370 8885 · info@kaizenrealestate.ca. Published November 11, 2026. General information only, not legal, tax, financial or engineering advice. Rules and programs change, so confirm details with the official source and your own professionals before you act. Not intended to solicit properties currently under contract.
Categories
Recent Posts
