Controversial Project Blue data center nears final OK from Pima County
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A controversial Tucson-area data center project that appeared to be on life support this summer is poised to clear its final political hurdles this month.
State of play: Project Blue, a planned data center by Beale Infrastructure and Humphrey's Peak Power on the southeastern edge of Tucson, has been a political lightning rod.
- The contentious project comes amid increasing public pushback to data centers over energy and water usage, environmental issues, public health concerns, noise and aesthetics.
The latest: The Corporation Commission last Wednesday voted 4-1 to approve an agreement for Tucson Electric Power (TEP) to provide energy to the data center, over the objections of opponents who traveled to Phoenix for the hearing.
- Developers have also pledged to match 100% of the energy Project Blue uses with renewable sources.
What's next: The county's sale of the 290 acres to Humphrey's Peak must close by Dec. 25.
- Supervisor Matt Heinz, a project supporter, told Axios he wants Beale to formally agree to codify its commitments on air cooling, renewable energy use and funds for county workforce development before the closing.
- Beale is willing to do so "to the extent that state law allows it," the company told Axios.
- The company intends to break ground in January, with operations slated to begin in 2027.
Zoom in: The project may be a fait accompli at this point.
- Heinz said the county could justify stopping the sale only if criminal or fraudulent conduct emerged and that blocking the closing would almost certainly land in court.
- Lee Ziesche of the No Desert Data Center Coalition argued the county could refuse to close the sale because the agreement requires city annexation, but Beale said that provision was to protect the land buyer and has been officially waived.
- Ziesche acknowledged that Beale would likely sue the county if it refused to move forward, but she said the legal fight would be worth it.
Catch up quick: The Tucson City Council in August unanimously rejected annexing the land and declined to pursue a development agreement amid increasing public opposition.
- The supervisors had already approved rezoning and the sale, so Beale moved forward with the project under county jurisdiction.
- The company originally wanted to be in the city limits to access Tucson water but switched to a "closed loop" air cooling system after the council's vote.
Friction point: Critics worry about energy demands and air and water contamination, per Ziesche. Water usage had previously been a major concern, as well.
- The other side: Beale told Axios that the cooling system is a closed loop that won't be connected to the local water system and the only emissions would be from backup generators used in cases of emergency.
The intrigue: Ziesche said her group is weighing legal action if the sale closes.
What we're watching: Amazon Web Services, long the data center's planned operator, withdrew following the switch from water to air cooling, the Arizona Daily Star reported this week.
- That means Project Blue must find another end user.
- A Beale executive told corporation commissioners the company is confident it will have a customer by the time the data center goes online, and the Daily Star reported that Beale is in talks with Meta.
- "Beale can only speak on behalf of our project, and not to the intention of other companies. Rather, it is up to any companies seeking to come into a market to announce that for themselves," the company told Axios.