Kincardine officials say there are no data centre proposals currently before the municipality, but they believe the community has several characteristics that could eventually attract developers.
The municipality recently submitted a series of recommendations to the province as Ontario develops its proposed Data Centre Playbook, calling for stronger municipal involvement, environmental protections, transparency and community benefits.
Kincardine's CAO Alan Smith says the municipality's interest in the issue isn't being driven by a project already in the works.
"There hasn't been any proposals in front of us," he said. "We're just trying to position the municipality to be aware of the provincial framework and how to improve on that framework."
However, Smith said Kincardine's location, available land and its established energy sector could make it a realistic destination for future development.
"I guess it's our location, also the current energy sector that we focus on and the land that we have in our area that would be most likely suitable for a possible data centre," he said.
Kincardine is home to Bruce Power and a significant nuclear-sector supply chain, while data centres require large and reliable supplies of electricity.
Smith said the municipality generally tries to position itself as an attractive place for investment, and data centres could eventually become one of the sectors looking at the area.
"Kincardine is an attractive place to do business," he said. "If they do knock on the door, we would have to see what it's all about."
Smith said he expects municipalities across Ontario will increasingly receive inquiries as demand for large-scale computing infrastructure grows.
"We just want to be prepared that if we do get a proposal, we are ready," Smith said. "Kincardine won't be immune to inquiries."
Kincardine's recommendations to the province include requiring formal municipal input before projects receive provincial grid approval, ensuring municipalities recover infrastructure and emergency-service costs, requiring water-efficient cooling systems and establishing standards for noise and backup power generation.
Council is also asking for greater transparency around the ownership and operation of data centres and the nature of the information being processed.
Smith said clearer provincial rules would be particularly important for smaller municipalities trying to assess projects that could require significant amounts of electricity, land and municipal infrastructure.
"The province has to take full lead and make sure that framework's in place to help communities, especially the small municipalities," he said.
He said Kincardine is supportive of Ontario developing province-wide rules rather than leaving individual municipalities to develop their own approach when proposals arrive.
"We're glad to see the province doing this," Smith said. "Ultimately, they have to set the parameters on such as these hyperscale developments."
Kincardine council has not taken a position for or against hosting a data centre.
Instead, Smith said the municipality wants the provincial framework in place before it is faced with making that decision.
The province is accepting public feedback on its proposed Data Centre Playbook until September 12.
