After Pima County approved the sale and rezoning of land needed to support Project Blue, a $3.6 billion data center, on a 290-acre campus, slated for construction southeast of Tucson, its fate rested on the City of Tucson approving annexation of the land into city limits so that the Tucson Water utility could provide water needed to support the project.
Fortunately, on August 6th, 2025, the annexation was unanimously rejected by the mayor and all council members on multiple levels, including water use, energy demands, and environmental impact.
Despite this win for the citizens and the environment, the plan does not stop here. The builders have alternate plans and lots of money to support them and will continue their efforts to build a total of three countywide.
For now, things are on hold, but new plans by the developer are in the works.
UPDATE: 01/06/26: KJZZ NEWS
Arizona Attorney General Kris Mayes has asked the Arizona Corporation Commission to reconsider its decision to grant an energy agreement for Project Blue.
Mayes claims the deal is unconstitutional because only the commission has the authority to set rates of private power companies.
Tucson also filed for a rehearing recently, claiming the city was denied the chance to participate in the ratemaking process.
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Click any link below to learn more!
Project Blue: An Analysis - Google Docs
Tucson Mountains Association: Project Blue Energy and Water Use Alert.
Coalition for Sonoran Desert Protection Project Blue: The facts and our concerns.
Watershed Management Group | Working together towards sustainable solutions
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