Giant $3.6 billion data center project, named Blue, given green light in Tucson, Arizona
The proposed Project Blue data center in Tucson, Arizona, is a significant development spanning 290 acres near the Pima County Fairgrounds, planned by San Francisco-based Humphrey's Peak Properties, LLC, and developed by Beale Infrastructure [1][2][4]. With Amazon Web Services reportedly involved, the project is expected to be one of the largest private-funded infrastructure investments in Tucson’s history, with a total capital investment of $3.6 billion over its multi-year construction period [4].
Economic Impact and Job Creation
The project is anticipated to create 3,024 direct construction jobs and 2,049 indirect jobs, with 180 permanent jobs by 2029, each offering an average salary of $64,000 [1][2][4]. The construction loans for Project Blue include $1.2 billion for construction and $2.4 billion for new equipment [1]. By 2029, the project is expected to have a $63.5 million annual economic impact [1].
Sustainability Measures and Water Strategy
Project Blue claims to be a "net water positive" initiative, investing in water conservation efforts and Tucson Water projects to offset its water consumption. This includes building the largest-ever public infrastructure project for delivering reclaimed water in Tucson, representing a major private-sector investment in sustainability infrastructure [4].
The developers state that the project will not reduce water flow in the regional rivers or the overall water availability but instead will work to protect watersheds and conserve water resources [1][2]. However, community concerns persist that the project could deplete drinking water sources and strain local energy resources [1][2][3][5].
Project Status and Controversy
The Pima County Board of Supervisors has approved the rezoning and comprehensive plan amendments for Project Blue [1]. However, the project still requires annexation and development agreement approval from the City of Tucson. As of early August 2025, the Tucson City Council voted unanimously to halt work on the project over concerns related to water and energy resource usage, putting its future in doubt [3].
The project has sparked distrust from community members over government, corporate motives, tech companies, and the rapid pace of AI and data center expansions [3]. The power for Project Blue is secured by a long-term clean energy contract with TEP, ensuring the project will be one of its biggest customers, supporting clean energy goals in solar and energy storage [1].
If annexation fails, Pima County will retain ownership of the land, which was bought by Humphrey's Peak Properties, LLC, for $20.8 million, contingent on annexation [1]. Construction of Project Blue is expected to begin in late 2025 or early 2026, with the first data halls operational by 2027 [1].
Despite the controversies, Project Blue Data Center is committed to sustainable water use, planning to use 100% renewable reclaimed water [1]. The developers will not seek local economic incentives but will leverage state-level incentives to support the project [1].
- The proposed Project Blue data center, with Amazon Web Services involved, is projected to be a significant investment in Tucson's history, spanning across various industries such as construction, finance, business, and technology, with a total capital investment of $3.6 billion.
- The net water positive initiative, Project Blue, claims to invest in water conservation efforts and local infrastructure projects to offset its water consumption, marking a substantial private-sector investment in sustainability infrastructure.
- The projected economic impact of Project Blue by 2029 includes an annual impact of $63.5 million, the creation of 3,024 direct construction jobs, 2,049 indirect jobs, and 180 permanent jobs, with each offering an average salary of $64,000.
- The developers of Project Blue, Beale Infrastructure and Humphrey's Peak Properties, LLC, have secured power for the project with a long-term clean energy contract with TEP, ensuring the use of clean energy in solar and energy storage, and have stated that they will not seek local economic incentives but leverage state-level incentives to support the project.
