Homes, shops, offices, leisure facilities, a 200-bed hotel and Therme Scotland resort are expected to receive low carbon heat and hot water from the new project.
The scheme, developed by Peel NRE, part of regeneration business Peel L&P, is predicted to save nearly 69,000 tonnes of carbon, the equivalent of planting more than 78,000 trees.
Scottish Government’s Zero Carbon Buildings Minister Patrick Harvie said: “It is vital that Scotland’s transition to net zero by 2045 is achieved in a fair and just way. Heat networks will play an important role in this journey, supported by Scotland’s Heat Network Fund.
“They will help make our homes and buildings climate friendly whilst also contributing towards tackling fuel poverty and one of the biggest cost of living pressures.”