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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Tucson taxpayers are likely to be on the hook for the costs of public transit indefinitely.
The city council voted last Tuesday to make public transit free for good, according to Councilman Steve Kozachik, after three years of not charging for transportation services.
Kozachik clarified to the University of Arizona (UArizona) student newspaper that the council’s actions last week meant that they wouldn’t reinstate transit fares until the council took an affirmative vote to do so.
The council voted to extend free public transit through this December during last Tuesday’s study session at a cost of $4.6 million. According to Kozachik, this motion was within the context of the council’s true intention to keep public transit free indefinitely.
The council also moved to establish a task force of stakeholders to determine how to keep public transit free. Mayor Regina Romero expressed concern that the council was essentially kicking the can down the road.
“To be honest, we’re moving the item every six months, and so I think we really need to figure out what is the long-term solution,” said Romero. “If we don’t have long-term funding options, then we need to start talking about what’s a fair fare. We just need to make sure that we do have the possible stakeholders and investors in the system.”
Councilman Steve Kozachik cautioned that this strategy of holding out to inspire funding from stakeholders was likely to backfire. He added that it was “highly improbable” the council would actually move to reinstate fares after December.
“I don’t agree that us treading water on the decision about fares is necessary to get the other stakeholders to the table. I don’t agree with that as a negotiating strategy,” said Kozachik.
Councilman Paul Cunningham raised the concern that the task force may not actually accomplish its appointed task of sourcing adequate funding or structuring the reinstatement of fares, pointing back to a three-year trend over the COVID-19 pandemic of alleged complacency and falling behind on goals due to virtual meetings.
“As much as I wish I was Obi-Wan Kenobi who could, like, use the Force to see what’s going to unfold, I can’t,” said Cunningham.
The council opted to maintain their position of free public transit, despite not having funding secured beyond December. Current funding sources for the remainder of the year, totaling $4.1 million — a $486,000 deficit, which Tucson will cover through the public Investment Plan funds — come from hotel and motel taxes, the Tucson Medical Center partnership, SunTran efficiency expense reductions, and a Visit Tucson funding formula adjustment.
UArizona also gave about $780,000 gleaned from student fees to fund the public transit. However, the estimated annual cost of public transit reaches around $11 million.
Some council members also mentioned that they’re attempting to tap Raytheon for long-term funding.
Prior to this year, federal COVID-19 relief funds covered the transit costs. Fares were scheduled to resume on January 1 of this year, but the city opted to source funds to cover the cost.
Back in December, the council considered additional parking garage fees or property taxes to cover the transit costs.
Tucson isn’t the first city to attempt totally free transit in the state, let alone in the country. Phoenix’s Valley Metro offers free busing for its neighborhood circulators, and the first year of its streetcar services is free. The city also subsidized a limited number of free public transit passes in 2021 using $1 million of American Rescue Plan Act (ARPA) funds.
There are dozens of other cities around the country, as well as university campuses, that offer free public transit.
As AZ Free News reported just prior to the Tucson City Council’s most recent decision, community members have criticized the three-year-long trial run of free public transit as more of a burden than a help. Locals have complained to several media outlets that the free transit enables criminal behavior and public nuisances.
Unionized bus drivers have also complained, claiming that free transit has lowered the quality of passengers and required them to become the “transit police.”
Watch the Tucson City Council study session here:
Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.
