Data centers are coming to Pima County, whether residents like it or not.
The Pima County Board of Supervisors has approved a new data center despite major community opposition and no end user formally lined up.
Amazon was outed earlier this summer as the longtime, unofficial end user lined up for the 290-acre data center, Project Blue, but the e-commerce giant reportedly backed out around the beginning of this month after the developer, Beale Infrastructure, nixed water cooling in favor of the more electricity-dependent air cooling process.
Amazon’s departure was uncovered during the Arizona Corporation Commission (ACC) hearing earlier this month by sources first reported on by the Arizona Daily Star. ACC approved, 4-1, a decade-long Energy Supply Agreement between Tucson Electric Power (TEP) and the developer to power Project Blue.
Beale Infrastructure made the cooling process switch after the Tucson City Council voted unanimously to deny access to their reclaimed water system back in August. Tucson Mayor Regina Romero also pledged to place limits on future data centers.
The days leading up to the council vote were filled with contentious community information meetings on the project.
Per 13 News, multiple unnamed sources told Pima County Supervisor and Tucson City Councilman Paul Cunningham that up to eight other companies expressed interest in taking Amazon’s place. Sources conflicted on whether one of the companies is Meta, or whether Meta had already backed out as Amazon had.
Project Blue’s developer, Beale Infrastructure, presented the proposed data center as both an economic driver and environmentally friendly operator: “no risks or financial burdens [will be] passed on to other customers,” their representatives promised in their presentations during the community information meetings.
Opponents argue these data centers will further strain an already stressed water supply and electric grid, ultimately leading to scarcity as well as higher fiscal and health costs for the consumer.
It was the promised economic benefits that won over the 3-2 majority of Pima County supervisors. The two supervisors against the data center, Andres Cano and Jen Allen, expressed concerns over the long-term unknown impacts on the environment and community health.
Pima County’s vote came several weeks after ACC approved Beale Infrastructure’s application for Project Blue.
Data centers are the powerhouse for platforms covering virtually every aspect of modern life online: government, streaming, remote work, cloud storage, e-commerce, education, finance, and healthcare.
An independent Economic Impact Study on Project Blue projects a $3.6 billion total capital investment, $250 million in tax revenues, 180 new jobs by 2029, and over 3,000 direct construction jobs during the building phase.
The project will be located north of Pima County Fairgrounds, at the I-10 and Houghton interchange. The development site is over a mile away from the nearest resident, located within an unincorporated area that’s part of the Southeast Employment & Logistics Center.
Beale Infrastructure is also moving on another, equally controversial data center development in Marana totaling 600 acres. Two rezoning applications were filed recently for potential data center development: Luckett North and Luckett South. Earlier this month, the town’s planning commission recommended rezoning for development.
As with Project Blue, the closest resident lives about a mile away from the proposed data center campus. It will also be an air-cooled facility.
In preparation for consideration of the data center, town officials produced two podcast episodes on the town’s data center ordinance and potential for development.
Marana Town Council is scheduled to consider the data center project on Jan. 6, 2026. Progress on the project is available for viewing on the town’s development projects and activity portal.
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The Arizona Corporation Commission (ACC) and the North American Securities Administrators Association (NASAA) are cautioning investors to remain vigilant this Christmas season amid an increase in sophisticated fraud schemes.
Drawing on data from NASAA’s 2025 Enforcement Report and its annual survey of investor threats, the ACC identified a dozen types of scams that state securities regulators say investors should watch for as fraudsters employ new technology, including artificial intelligence (AI), to target victims.
According to NASAA’s report, state securities regulators conducted more than 8,800 active investigations in 2024, resulting in fines and restitution totaling over $259 million. The report found that while scammers increasingly use technological tools to make schemes appear legitimate, the underlying goal remains to separate victims from their money.
“The rapid growth of technology and the rise of artificial intelligence gives scam artists new tools to steal your money,” said NASAA President Marni Rock Gibson.
ACC Chair Kevin Thompson echoed Gibson, emphasizing the role of advancing technology in enabling fraud, saying in the release that AI and other tools give “scam artists new tools to steal your money,” and that many fraudulent investment pitches play on investors’ fears rather than genuine innovation.
“Fraudsters are pitching new investments that often have nothing to do with latest tech developments and instead play on the fear of missing out on the next ‘best thing,’” he explained.
The 12 investor threats outlined by the Commission’s Securities Division include:
Affinity or “Pig Butchering” schemes — long-term romance-based cons that build trust before prompting victims to invest in bogus platforms.
Deepfake impersonations — use of AI-generated video and voice clones of celebrities or contacts to solicit funds.
Phantom AI trading bots — fraudulent algorithms marketed as guaranteed return systems.
Digital asset and crypto fraud — scams involving unregistered securities and exaggerated return promises.
Fake AI equity pitches — sales of equity in fictitious AI companies or “pump and dump” schemes.
Social media lures — investment scams originating on platforms such as Facebook or X.
Short-form video hype — slick social media clips touting “get rich quick” opportunities.
Text and WhatsApp traps — unsolicited messages that pivot into fraudulent investment offers.
Targeting older investors — senior citizens are disproportionately targeted with both traditional and digital scams.
Account takeovers — phishing and AI-assisted hacks that seize control of accounts to solicit funds from contacts.
Website and app spoofing — cloned sites designed to harvest login credentials and funds.
Unregistered solicitors — individuals selling investments without proper licensing; regulators opened 944 investigations in 2024 involving unregistered sellers.
The ACC’s Securities Division encourages investors to exercise skepticism, conduct independent due diligence, and contact a trusted third party before committing funds to any investment, the commission said, quipping they should review the list of threats and “check it twice to avoid ending up with a stocking full of coal.”
Investors looking to check the license status or disciplinary history of an investment promoter can contact the Securities Division’s Duty Officer at 602-542-0662 or SecuritiesDiv@azcc.gov, or visit azcc.gov/azinvestor for more information.
The Arizona Corporation Commission (ACC) is preparing to roll out a new online business filing system, Arizona Business Connect, which is scheduled to go live on January 12, 2026. The new platform will replace the Commission’s current eCorp system and is intended to modernize how businesses file and access corporate records in the state.
According to the ACC, Arizona Business Connect will offer updated technology, improved security features, and enhanced functionality designed to streamline the filing process and improve the overall customer experience for corporations and other business entities.
To complete the transition, the Commission will temporarily shut down the existing eCorp portal to transfer and verify a large volume of data before launching the new system. As a result, online filing and business searches through eCorp will be unavailable beginning at 5:00 p.m. Mountain Standard Time on Friday, January 2, 2026.
During this transition period, corporations will not be able to file documents or search business records online. However, the Commission says customers will still be able to submit filings using paper forms. Paper filings may be delivered in person at ACC offices in downtown Phoenix or Tucson or sent by mail or fax.
All paper documents received after the eCorp shutdown on January 2 will be assigned an effective date based on when they are received by the Commission. Those documents will not be entered into the new Arizona Business Connect system until January 12 or shortly after the portal becomes operational.
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
The Arizona Corporation Commission recently approved an amendment from Chair Kevin Thompson that he claims cuts more than half of the Arizona Public Service Company’s proposed budget for demand-side management and energy-efficiency programs—removing roughly $51 million in annual surcharges that would have been passed on to ratepayers.
The vote comes as the Commission continues the process of repealing a 2010 energy-efficiency mandate that has driven more than $1 billion in cumulative surcharges on customer bills over the past 15 years. Those surcharges have funded utility-run programs intended to reduce energy consumption and defer the need for new power generation.
APS’ amended 2025 Demand Side Management (DSM) and Energy Efficiency (EE) plan sought $90.9 million—an increase from the $79.4 million approved in 2022. Commissioners unanimously rejected APS’ proposed funding increases for several existing and new programs. Thompson said the cuts were necessary to rein in programs that had expanded far beyond their original purpose.
“I support energy efficiency and demand side management programs that reduce the need for additional generation and lower the costs for all ratepayers,” Thompson said. “But APS’ annual budget for these programs had become a bloated Christmas tree of incentives and rebates for special interests and customers who should be paying for these upgrades on their own.”
According to Thompson, previous Commissions allowed the DSM/EE program to grow beyond its intended goals, resulting in programs that offered rebates for equipment ranging from horticulture fans and livestock ventilation systems to incentives for electric golf carts, off-road utility vehicles, EV charging stations in multifamily buildings, and advanced power strips. The Commission also ended a long-standing practice of providing incentives to home builders and contractors for installing energy-efficient appliances—upgrades already mandated elsewhere in state law.
APS had also proposed new incentives for builders, including a $1,000 rebate per home for installing ENERGY STAR NextGen-certified systems requiring connected heat pumps, water heaters, and smart thermostats. The company had additionally sought to increase its “EV-ready home” incentive from $100 to $200. All of those proposals were rejected.
With Thompson’s amendment, the budget was cut by more than 50%. The approved spending plan now focuses on what commissioners described as core, ratepayer-benefiting programs. Thompson said the revised plan maintains assistance for vulnerable Arizonans while delivering broad relief to all APS customers through lower surcharges.
“We have accomplished a major course correction,” he said, “one that will save APS ratepayers more than $50 million in annual costs while preserving programs that truly help the most vulnerable members of our society.”
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
The Arizona Corporation Commission (ACC) voted 4-1 on Wednesday to approve a legally binding 10-year Energy Supply Agreement (ESA) between Tucson Electric Power (TEP) and Humphrey’s Peak Power LLC to power a planned data center campus proposed for Pima County.
The Commission underscored that its review of the agreement was limited solely to ensuring statutory compliance and safeguarding ratepayers’ interests. Regulators noted they do not hold jurisdiction over the nature or approval of the associated data center project itself, only the energy contract enabling its power supply.
As reported by the Arizona Capitol Times, the ACC meeting on December 3rd was contentious, with almost two dozen members of the public calling on the Commissioners to vote against the agreement in over three hours of discussion. Commissioner Rachel Walden was the only dissenting vote.
“I’m still wary about whether or not there is a data center at the end of this,” Walden said, according to the Times.
The ACC voted 4-1, w/Commissioner Walden casting voting "nay", to approve an Energy Supply Agreement between TEP & the company behind a planned data center in Pima County. The ACC's role is to ensure regulatory requirements are met, & protections for TEP customers are provided. pic.twitter.com/EkSQkaIJwz
TEP, a regulated public utility, is legally obligated to serve all eligible customers within its designated service territory without discrimination and may not refuse service to applicants who meet interconnection and regulatory requirements, the ACC explained in a press release. Commissioners reiterated that ESA terms must provide protections not only for the contracting parties but also for the broader TEP ratepayer base.
During the meeting, TEP executives said that the data center customer will ultimately decrease other customers’ rates, arguing the facility will make a larger revenue contribution than the actual cost of serving it, according to the Times.
Erik Bakken, senior vice president and chief administrative officer at TEP, explained, “We believe that we’ve got the gold standard special contract for a data center with existing resources and existing capacity that’s available.”
In a press release, TEP said its usage-based rates are set by dividing the total revenue the utility is allowed to collect by projected energy sales. Bringing in a large new user like a data center increases overall sales, the company argued, which allows per-kilowatt-hour charges for other customers to move lower than they otherwise would be.
In comments to 13 News, Pima County Supervisor Matt Heinz told the outlet that Amazon Web Services (AWS) will no longer be the end user for the data center referred to as “Project Blue,” citing multiple sources. He stated that there are now as many as seven or eight different potential end users. The outlet reported Tuesday that Facebook’s parent company, Meta, could potentially be the new suitor for Beale Infrastructure’s project based on comments from Heinz and Tucson City Councilman Paul Cunningham.
Arizona Capitol Times reported that this shift was owed to the project switching from water-cooling to air-cooling. Beale Infrastructure, the project developer, reportedly told commissioners that it is confident an end user will be found in time for the data center’s projected completion in 2027.
The data centers’ proposed 290-acre campus in Pima County, per Beale’s ESA application obtained by AZ Luminaria, has sparked a massive public debate in southern Arizona, including questions about grid load growth, long-term power procurement, water use before Beale’s conversion to air-cooling, and whether infrastructure planning is keeping pace with rapid expansion in energy-intensive industries.
