- Mayor and City Council unanimously halted Project Blue.
- Concerns included water use, transparency, and community benefit.
- Developer pledged full reclaimed water use and replenishment.
- Project promised 180 permanent jobs, 3,000 construction jobs.
- City advancing regulations for large water users and data centers.
Tuesday, August 12, 2025 — On Wednesday, August 6, Tucson’s Mayor and City Council voted unanimously to end negotiations on a $3.6 billion proposal known as Project Blue
. The plan called for building a large-scale data center campus on 290 acres north of the Pima County Fairgrounds. In the same meeting, city leaders moved to create new regulations for large water users and update zoning rules for data centers.
The decision followed months of discussion, public meetings, and review of information from both the City of Tucson and Pima County. Council members cited concerns over transparency, long-term impacts, and whether promised benefits would truly outweigh costs.
What Project Blue Proposed.
Project Blue, backed by Beale Infrastructure, envisioned a high-tech campus of up to 10 data center buildings, with the first operational as early as 2027. An economic study projected $97 million in city tax and fee revenue during the first decade of operation, along with 180 permanent full-time jobs averaging $64,000 annually and about 3,000 construction jobs during buildout.
The project promised significant infrastructure investments, including an 18-mile reclaimed water pipeline, a 30-acre aquifer recharge facility with public recreation space, and funding for grid upgrades through Tucson Electric Power. The developer pledged to use only reclaimed water for industrial purposes and to replenish 100 percent of all water consumed, including reclaimed supplies.
Water and Energy Details.
According to city and county documents, the data center’s water use at full build would be comparable to four Pima County golf courses if both its primary and secondary sites were completed. The reclaimed water supply had been earmarked for economic development projects and was not expected to affect existing customers or environmental projects such as the Santa Cruz River Heritage Project.
On the energy side, Project Blue’s initial phase would have required 250–350 megawatts of power, increasing in later phases. Tucson Electric Power confirmed that necessary infrastructure upgrades would be completed before the facility came online and that the developer would fund improvements directly tied to the project.
Public Response and Council Action.
Public reaction was mixed. Supporters pointed to job creation, tax revenue, and infrastructure benefits. Critics questioned whether the benefits justified the potential environmental footprint, especially in an era of prolonged drought.
Ultimately, the Mayor and Council determined the project, as proposed, would not move forward. They instructed staff to cancel related annexation proceedings and public hearings, and to remove the development agreement from future agendas. At the same time, they initiated steps to require permits and zoning changes for future large-scale water users and data centers.
