Heavy construction equipment rolled onto a 290-acre site north of the Pima County Fairgrounds yesterday, marking the official start of work on Project Blue, the first hyperscale data center campus in Pima County.

Large vehicles began clearing and grading the desert land on April 24, 2026, as part of early site development for what will eventually become a multi-building facility.

Developer Beale Infrastructure is leading the project on land it purchased from Pima County. Plans call for up to 10 data center buildings totaling around 2 million square feet, with an initial phase of four buildings.

The first building could come online as early as 2027, with the full campus becoming operational by 2028. The project represents a $3.6 billion capital investment and will create more than 3,000 direct construction jobs during the 2026–2028 build-out. Once operational, the facility will employ about 180 permanent workers, including engineers, technicians, and operations staff, with an average salary of around $64,000.

Economic impact

Economically, the development is forecast to generate $250 million in tax revenue over 10 years — including $97 million for the City of Tucson, $60 million for Pima County, and $93 million for the state.

The campus will be powered through an agreement with Tucson Electric Power, using up to 286 megawatts. Beale has committed to matching 100% of the energy use with renewable sources and has shifted to an air-cooled design that uses a closed-loop system with minimal water consumption.

The location sits within Pima County’s Southeast Employment and Logistics Center, chosen for its proximity to high-voltage infrastructure and distance from residential neighborhoods.

The start of construction drew immediate protests from the No Desert Data Center Coalition. Dozens of demonstrators gathered at the site starting at 7 a.m. on April 24, holding signs and blocking construction vehicles. Coalition members expressed concerns over water use, energy demands, and environmental impact on the desert habitat.

Beale Infrastructure has emphasized the project’s role in supporting local industries and its commitments to sustainability and community benefits, including up to $15 million in contributions for education and infrastructure.

Several permits for the project remain under review, while the City of Tucson will examine new data center regulations in the coming weeks.

This marks a significant milestone for digital infrastructure in Southern Arizona, though it continues to spark debate over long-term resource use in the desert. Project Blue marks a significant milestone for digital infrastructure in Southern Arizona. Across the U.S., large-scale data center projects continue to advance, including a $16 billion AI-focused campus in Saline Township that has already secured full financing.

Project Blue Fact Sheet

Project Name: Project Blue

Location: 290-acre site north of the Pima County Fairgrounds, within the Southeast Employment and Logistics Center, Tucson, Arizona

Developer: Beale Infrastructure

Status: Construction officially began on April 24, 2026 with land clearing and grading. Heavy equipment is now on site.

Key Project Details

• Total investment: $3.6 billion
• Size: Up to 10 buildings, approximately 2 million square feet at full build-out
• Power capacity: Up to 286–600 MW (initial phases lower)
• Timeline: First building potentially online in 2027, full campus operational by 2028
• Construction jobs: Over 3,000 direct jobs during 2026–2028 build period
• Permanent jobs: Approximately 180 full-time positions (average salary ~$64,000)
• Tax revenue: $250 million over 10 years ($97M to City of Tucson, $60M to Pima County, $93M to State of Arizona)

Energy & Water

• Powered by Tucson Electric Power with commitment to 100% renewable energy matching
• Uses air-cooled, closed-loop cooling system to significantly reduce water consumption
• Water sourced from treated wastewater and other non-potable sources

The site was purchased from Pima County in 2025 after a 3–2 Board of Supervisors vote. The project has faced opposition from the No Desert Data Center Coalition over water use, energy demands, and desert habitat impacts. Protests occurred on the first day of construction, with demonstrators attempting to block vehicles.