City Council Halts Arizona Data Center Project

A proposed large data center in southern Arizona is facing significant setbacks after a city council decision on Wednesday directed staff to cease all work related to the project.

Known as “Project Blue,” the data center was planned to occupy 290 acres in Pima County. Although the county’s board of supervisors approved the sale of land for the project, it still required development agreement and land annexation approvals from the City of Tucson, as reported by local news.

During the council meeting, numerous attendees expressed their opposition to the project, primarily due to concerns related to utility usage.

“In addition to water use, this was a problem due to energy use,” stated Councilman Kevin Dahl, who attended the meeting.

Local reports indicate that this data center is associated with major tech companies, including Amazon.

An Amazon Web Services spokesperson mentioned, “AWS previously engaged in standard due diligence processes in Arizona, like any location where we consider building and operating our infrastructure.” The spokesperson elaborated that there are currently no firm commitments or contracts in place for this project and that decisions will prioritize community benefits.

Beer Infrastructure, the entity behind the project, expressed disappointment over the council’s decision, claiming it missed opportunities for urban development. They noted that data centers are critical for modern economies and are essential in serving local governments across the U.S. The company also aims to collaborate with leading technology firms to support the nation’s economic advancement through data infrastructure.

Project Blue was projected to generate $250 million in tax revenue and create 3,000 temporary construction jobs, with an average annual salary of $64,000. However, the residents and city council remained unconvinced. Reports highlighted that the project would require more water than four golf courses and significant energy usage.

Furthermore, Councilor Nikki Lee remarked on the broader implications of this decision, saying it reflects growing distrust toward government and technology businesses, especially regarding concerns over privacy and the rapid pace of advancements like artificial intelligence.