Updated December 3, 2025:
Amazon has pulled out of the embattled Project Blue data center according to latest insight. This was relayed by city and county leaders, however another large company may take over. Pima County Supervisor Matt Heinz and Tucson City Councilman Paul Cunningham noted their remarks. Heinz noted he heard rom multiple sources that Amazon will no longer be the end user. However, he confirms that there are now potentially seven or eight different end-user tenants. Developer Beale Infrastructure, which was set to lead the project to build the facility near the Pima County Fairgrounds, said Tuesday that while Amazon showed interest, it never had an agreement in place.
“AWS has previously engaged in standard due diligence processes in Arizona, like we do in any geographic location we consider building and operating our infrastructure,” Amazon noted in a statement. However, they noted they do not have any commitments or agreements in place to ensure their data center developments provide the best possible product and value. On the other hand, Beale said it cannot comment on the intentions of other companies. There has been strong opposition to Project Blue from the start, with most questioning the facility’s water and power use. In fact, Beale changed the plans for the facility from water-cooled to air-cooled, but the opposition remained. Beale later said it was committed to using renewable sources for the facility. Major companies such as Microsoft are making strides in their data center projects with their largest and most advanced project taking shape in Mount Pleasant, Wisconsin.
August 7, 2025: TUCSON, Arizona – The Pima County Board of Supervisors has approved the rezoning and comprehensive plan amendments needed to pave the way for Project Blue, a $3.6 billion data center campus slated for Tucson’s Southeast Employment and Logistics Center (SELC) near the Pima County Fairgrounds. The vote passed narrowly at 3-2.
A Strategic Tech Investment
Project Blue, led by San Francisco-based Humphrey’s Peak Properties, LLC, and developed by Beale Infrastructure, will span 290 acres and is set to become one of the largest electricity consumers in the Tucson Electric Power (TEP) grid. The project will consist of up to 10 buildings totaling 2.5 million square feet upon full buildout.
Though the developers will not seek local economic incentives, they are leveraging state-level incentives to support the project. County Administrator Jan Lesher emphasized the project’s broad economic significance, calling data centers the “physical backbone of the internet.”
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Economic and Environmental Commitments
The development is projected to create:
- 180 permanent jobs by 2029 with an average salary of $64,000
- 3,024 direct construction jobs
- 2,049 indirect jobs during the 2026–2028 construction phase
The initial investment includes $1.2 billion in construction and $2.4 billion in new equipment, with a $63.5 million annual economic impact by 2029.
Project Blue Data Center is also committing to sustainable water use, planning to use 100% renewable reclaimed water. Developers will fund an 18-mile reclaimed water pipeline and a 30-acre aquifer recharge facility to replenish water lost to operations.
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Energy, Annexation, and the Road Ahead
A long-term energy agreement with TEP ensures Project Blue will become one of its biggest customers while supporting the utility’s clean energy goals, particularly in solar and energy storage.
Final approval hinges on the City of Tucson’s annexation of the land, which is essential for securing water service. If annexation fails, Pima County will retain ownership.
Construction is expected to begin in late 2025 or early 2026, with the first data halls operational by 2027.
Project Blue Data Center: Quick Facts
- Location: Houghton Road near Pima County Fairgrounds, Tucson, AZ
- Developer: Beale Infrastructure
- Land Buyer: Humphrey’s Peak Properties, LLC
- Cost: $3.6 billion total investment
- Footprint: Up to 2.5 million sq. ft. across 10 buildings
- Construction Jobs: 3,024 direct, 2,049 indirect
- Permanent Jobs: 180 by 2029
- Average Salary: $64,000 (requested: $75,000)
- Water Strategy: Reclaimed water pipeline and recharge project
- Power: Long-term clean energy contract with TEP
- Annexation: Required by City of Tucson for water access
- Land Sale: $20.8 million, contingent on annexation
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