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.
The newest member of the Tucson City Council is further left than the rest of the council’s Democrats.
That’s because newly elected Tucson Councilwoman Miranda Schubert is a socialist. Schubert’s victory can be credited in part to several powerful national players in progressive politics.
One of those key players is the Democratic Socialists of America (DSA). The DSA endorsed Schubert; she is also a member of their Tucson chapter.
@MirandaForWard6 is a member of @dsa_tucson and founding organizer of CWA Local 7065 United Campus Workers of Arizona running for Tucson City Council. If elected, Miranda will prioritize housing justice, racial justice, and fighting climate change. pic.twitter.com/pQ5ShEWviJ
— DSA National Electoral Commission (@DsaElectoral) July 28, 2021
The DSA platform is the furthest to the left, policywise, on every issue.
The DSA advocates for:
making all healthcare, college, and childcare free;
cancelling all student loan debts;
decriminalizing all drugs;
abolishing prisons, mandatory minimum sentencing, and cash bail;
stripping police departments of military-grade weapons and equipment;
establishing universal rent control;
providing free counsel for all tenants;
expanding subsidized housing;
mandating paid family leave for all workers;
reducing the regular workweek to 32 hours;
establishing more unions in the workforce;
eliminating fossil fuels;
transferring ownership of transportation and energy infrastructure to the public;
raising taxes on wealthier families, corporations, and private colleges and universities;
mandating a permanent ceasefire in Gaza;
ending military support and commerce to Israel;
closing overseas bases and reducing the military budget;
abolishing borders and immigration enforcement;
ending economic sanctions on foreign countries;
restoring voting rights to felons;
granting voting rights to noncitizens;
establishing statehood for Washington, D.C.;
abolishing the electoral college;
adding more House seats;
ending the Senate filibuster;
and limiting the Supreme Court’s powers
Schubert’s local DSA in Tucson aligns with this platform, and also supports progressive causes like allowing gender transitions for minors.
Joe Biden, Kamala Harris, and the Democratic party machine do not believe in abolition of police, prisons, or incarcerated labor.
Another key player integral to Schubert’s victory was Run For Something (RFS), a political action committee devoted to recruiting and providing campaign assistance to progressive candidates across all 50 states. A former staffer from Hillary Clinton’s 2016 presidential campaign, Amanda Litman, and a Democratic Party consultant, Ross Morales Rocketto, launched RFS in 2017.
Schubert was one of two 2025 candidates in Arizona to receive support from RFS. They also provided Schubert support for her unsuccessful council run in 2021; that year she was their only endorsed candidate for Arizona.
IRS records show the social welfare nonprofit arm for RFS — formed in 2020 with the same name as its parent organization — reported over $6 million in revenue, over $9 million in expenditures, and nearly $7 million in total assets in the last available reporting (2023).
Another DSA member won a significant seat across the country on Tuesday night: Zohran Mamdani for New York City mayor.
Along with the strength of progressive powerhouses DSA and RFS, Schubert had significant support from the corporate sector: specifically, those assisting in transitioning the state to “clean” energy.
Schubert’s partner, Amanda Maass, is senior managing consultant at Illume Advising, a progressive research and advisory firm with headquarters in Tucson and Madison, Wisconsin. Illume assists utilities, states, and governments with the adoption of “clean” and “green” initiatives such as decarbonization and renewable energy.
Both Arizona Public Service (APS) and Tucson Electric Power (TEP) have been Illume clients. In recent years, Illume worked with both to craft a DEI-driven plan to electrify transportation across Arizona.
Illume has close ties to local and state leaders, including Tucson Mayor Regina Romero, Pima County Deputy Administrator Steve Holmes, Phoenix Mayor Kate Gallego, and Attorney General Kris Mayes. Romero’s communications and policy advisor, Victor Mercado, was Illume’s marketing and business development principal.
Illume founder and co-owner Anne Dougherty is board chair of the LGBTQ+ Alliance Fund of Southern Arizona, and director for the Arizona Technology Council as well as Groundswell Capital.
Prior to running for council, Schubert founded a labor union for Arizona’s public universities and some community colleges, CWA Local 7065 United Campus Workers of Arizona, and a local housing and transit advocacy group, Tucson for Everyone.
Schubert also served on two city commissions, the Complete Streets Coordinating Council and the Board of Adjustment.
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When they first announced their original Clean Energy Commitment in 2020, APS boasted about their plans to decarbonize. According to their own release, they weren’t doing what they described as the “easy thing” other utilities were doing–developing resource plans that still allow you to produce some carbon emissions, so long as you offset them elsewhere. No, they were committing to go “carbon free,” which means shutting down every single source of baseload power beside nuclear and replacing it entirely with solar, wind, and battery storage.
But late last week, APS announced a modification to their climate commitment. Instead of going carbon free, APS is switching to carbon neutral by 2050.
How is the new commitment different than the old one? For ratepayers worried about skyrocketing utility bills, it doesn’t change much…
A coalition of Arizona businesses from across the state released a statement expressing strong support for a newly announced project by Energy Transfer LP. The project will bring an interstate natural gas pipeline into the state from West Texas, constructed, owned, and operated by Transwestern Pipeline Company. It will power Arizona Public Service (APS), Salt River Project (SRP), Tucson Electric Power (TEP), Unisource Energy Services, and other utilities that supply energy to Arizona’s homes and businesses.
The new 42-inch pipeline, kept pressurized by nine compression stations, will span 516 miles across Texas, New Mexico, and Arizona. It will carry 1.5 billion cubic feet per day of natural gas. It is expected to come online in 2029.
🚨 Just announced: A major win for Arizona’s energy and economic future.
We’re proud to stand with 50+ business, industry, and community organizations across the state in support of Transwestern’s new natural gas pipeline—a critical investment to keep Arizona competitive,… pic.twitter.com/iyrdo4qNHs
AZBigMedia reported that the project is expected to cost approximately $5.3 billion, including about $600 million of Allowance for Funds Used During Construction (AFUDC)
“With this new natural gas pipeline, Arizona will be well positioned to have reliable baseload power to meet the growing demands of our economy,” said Arizona Corporation Commissioner Rachel Walden in a statement. “I’m pleased to see that the City of Mesa is participating in this project, serving as an example of Arizona’s ability to attract new commerce with affordable power while innovating in water conservation.”
In a post to X, Commissioner Nick Myers noted that this annoucement came alongside the recent accouncement that APS is rolling back its Biden-era zero-carbon goals. He said, “On the same day it was announced that APS is backing off their Green New Deal style policies, further proof that this commission has not been friendly to those policies, it was announced that Transwestern will be putting in another natural gas pipeline into Arizona. Energy dominance at its best!”
On the same day it was announced that APS is backing off their Green New Deal style policies, further proof that this commission has not been friendly to those policies, it was announced that Transwestern will be putting in another natural gas pipeline into Arizona. Energy…
— Nick Myers – Arizona Corporation Commissioner (@votenickmyers) August 7, 2025
According to the Arizona Chamber of Commerce and Industry, “The project will help ensure that Arizona remains competitive with other high-growth states by providing the reliable, cost-effective energy necessary for economic development and job creation, particularly as energy demand is projected to soar.”
The Chamber added in a press release, “Natural gas is a cornerstone of Arizona’s energy system, generating 45% of the state’s electricity. It plays a critical role in supporting Arizona’s modern electricity grid, helping utilities meet peak demand during extreme summer weather and enabling the deployment of renewable energy resources like solar and wind year-round. Additionally, more than 1.4 million residential, commercial, and industrial customers count on the natural gas distribution system for their home comfort and business needs, including in sectors like semiconductors, EV batteries, and other advanced manufacturing.”
APS director of Resource Integration and Fuels Jill Freret told KJZZ, “This expansion for APS and for some of our peer utilities really allows us to bring in more natural gas to fuel existing facilities with growing demand and position us to have additional gas on our system out into the future.” Freret observed that the energy demand of APS is expected to increase by over 60% in the next 13 years.
The benefits of the project are not limited to the energy industry, however. Patrick Bray, Executive Vice President of Arizona Farm and Ranch Group, explained, “Access to natural gas supply is essential for our farmers and ranchers to power critical operations. This pipeline is a smart investment that will ensure the continued success and competitiveness of Arizona’s agriculture industry, allowing us to produce the food that sustains our communities and contributes significantly to our economy.”
In addition to dozens of Chambers of Commerce across the state, from Flagstaff to Sahuarita, industry organizations including the Arizona Cattle Feeders Association, Arizona Lodging & Tourism Association, Arizona Manufacturers Council, Arizona Multi-housing Association, Arizona Restaurant Association, Arizona Rock Product Association, Arizona Small Business Association, Arizona Trucking Association, and the United Dairymen of Arizona, all expressed support for the pipeline.
