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) 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.
A Pima County Sheriff’s office deputy was placed on leave with pay after making threats to President Donald Trump on social media.
Deputy Ramon Hernandez made the threats following the assassination of conservative leader Charlie Kirk last week.
Hernandez called for Trump’s assassination, celebrated Kirk’s assassination, and called for revolution in multiple posts.
“Death to pedophile rapist Trump,” posted Hernandez, sharing a video depicting news coverage of pro-Palestinian protesters interrupting a Trump dinner in Washington, D.C.
“Death to Israel, death to pedo-Trump,” said Hernandez, sharing a post describing Israel’s recent bombing of Doha, Qatar.
“[Trump is a] piece of shit human. REVOLUTION,” posted Hernandez, in response to news of a court allowing Trump to defund Planned Parenthood pending case review of Medicaid funding.
“Feel bad for his kids, then again, they’re probably better off,” said Hernandez, sharing posts from Kirk that criticized Islam and Gaza.
“For the past 2 years I’ve been watching children’s bodies snipped and shredded to bits by U.S. bombs and Israel pushing the button….. And here we are feeling empathy for Charlie who only promoted hate, racism and was all for the annihilation of the Palestinians. Ironically Charlie didn’t believe in ‘empathy.’ We are well past the red line in this country. A pedophile rapist for a president, the military initiated for no real reason against its own citizens, ICE abducting anyone of color….. We are long overdue for a revolution. As for poor Charlie, that’s his own karma that got him where he now lays. Stand on the right side of history, especially if you’re a cop. Cops for Palestine.”
Do you feel someone who celebrates murder of conservatives can be trusted to serve and protect your residents who hold these same values? pic.twitter.com/bJpKuzPNu1
Hernandez called for the “tak[ing] out” of Israel Prime Minister Benjamin Netanyahu.
The Secret Service launched a criminal investigation into Hernandez.
Sheriff Chris Nanos said in a video statement that they were concerned about Hernandez’s posts, which he said were “alleged to be inappropriate.” Nanos said they would open their own investigation pending the outcome of the federal investigation.
“We have been notified by several citizens, as well as the Secret Service. The Secret Service is conducting a criminal investigation as we speak, and we are cooperating fully. To that point, we have protocols that are governed by law and by policy,” said Nanos. “To be clear, this sheriff and this department does not and will never condone violence of any kind. We hold our team to a higher standard: a level of professionalism that’s above all. We expect the best out of our team at all times, 24/7, not just during their eight-hour day.”
A Secret Service spokesperson told KJZZ that they couldn’t comment on active investigations.
“We take all threats against our protectees seriously,” stated the spokesperson. “As a matter of practice, we do not comment on matters involving protective intelligence.”
Earlier this summer, Hernandez was featured in the news as a protester against Trump’s immigration policies. Hernandez carried a Palestinian flag.
“Standing up for Indigenous people, decolonization is the main thing,” said Hernandez. “If we’re able to liberate Palestine, we’re able to liberate the world.”
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The One Big Beautiful Bill Act (OBBBA) marks the most transformative overhaul of federal tax policy since the 2017 Tax Cuts and Jobs Act (TCJA).
The OBBBA locks in the TCJA’s individual tax provisions, avoiding a tax increase for approximately 62% of tax filers in 2026, according to the Tax Foundation.
The group’s recent analysis also shows that the law will reduce federal taxes for individual taxpayers in every state, with an average national tax cut of $3,752 per taxpayer in 2026.
The economic impact is equally as big, with 938,000 new full-time equivalent jobs created over the long term, including 132,000 in California, 81,000 in Texas, and down to 1,800 in Vermont.
In Arizona, the Tax Foundation says that the OBBBA will deliver an average tax cut of $3,521 per taxpayer in 2026, providing relief to families and individuals across the state.
Maricopa County will see an average tax cut of $4,049 per taxpayer in 2026, driven by key provisions like:
Income Tax Rate Cuts and Bracket Changes: $1,613 in savings per taxpayer.
Standard Deduction Expansion: $821 in savings
Child Tax Credit Expansion: $630 in savings
Tip and Overtime Deductions: $50 and $229 in savings
Business Provisions: $1,321 in savings
Other counties in the state will see major tax cuts in 2026, including Coconino County, with $3,096, Yavapai County, with $3,066, Greenlee County, with $3,011, Pima County, with $2,781, and Pinal County, with $2,553.
The Tax Foundation also projects that Arizona will gain approximately 18,014 full-time equivalent jobs in the long run, boosting local economies and supporting communities across the state.
OBBBA’s long-term outlook remains strong, with average tax cuts projected to dip to $2,505 in 2030 due to the expiration of temporary provisions like the tip and overtime deductions, before rising to $3,301 by 2035 as inflation enhances the value of permanent cuts.
Arizona’s business-friendly provisions, such as permanent 100% bonus depreciation and research and development (R&D) expense, will continue to drive investment and job creation.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
As Arizona counties finalize their budgets for Fiscal Year 2026, the majority are preparing to raise property taxes, with 11 of the state’s 15 counties proposing increases totaling nearly $54.8 million, according to the Arizona Tax Research Association’s (ATRA) July 2025 newsletter. The moves come amid population growth, infrastructure demands, and rising costs, but they have also triggered requirements under Arizona’s Truth in Taxation (TNT) law aimed at ensuring transparency.
ATRA’s analysis reveals that under state law, primary property taxes — which fund the general operations of county governments — are subject to TNT provisions. These rules require counties to notify taxpayers if their proposed tax levy exceeds the previous year’s amount, excluding new construction. Notifications must be published in newspapers of general circulation, and a public hearing must be held before any vote to approve the increase.
TNT also applies to some countywide special taxing districts, including those for libraries, flood control, and public health. While counties are allowed to raise taxes up to a constitutional limit — 2% above the previous year’s levy, plus new construction — only Apache and Coconino counties currently tax at that maximum level.
According to ATRA, of the counties planning tax hikes, Pima County stands out with the largest proposed increase: $33 million. This includes a nearly 25-cent hike in the primary property tax rate above TNT limits. Pima is also planning to exceed TNT thresholds for both its flood control and library districts.
Maricopa County, Arizona’s most populous, is proposing its first primary property tax increase in five years — not by changing the rate, but by holding it steady. Due to growth in the tax base, this would still result in a $12.5 million increase, exclusive of new construction.
In Coconino County, library district taxes are slated to rise 11.5% over TNT, generating approximately $780,000 in additional revenue. The county also plans to levy the maximum amounts for its primary property tax, as well as for its flood control and public health districts. Altogether, Coconino’s tax increase would total around $1.8 million.
Mohave County is eyeing a 7% increase in primary property taxes, which would raise about $3.2 million. Four counties — Graham, Greenlee, La Paz, and Pinal — have opted not to increase property taxes this fiscal year, bucking the statewide trend.
County officials say the proposed increases are necessary to sustain essential public services amid rising costs and growing populations. Still, the hikes are expected to generate scrutiny from taxpayers, especially in counties proposing large percentage increases or exceeding TNT thresholds.
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
