
Arizona Data Center Expansion Faces Backlash Over Water Use
Arizona residents are mounting strong opposition to large new data centers, especially Beale Infrastructure's Project Blue near Tucson, over water use, electricity demand and environmental impacts. Tucson blocked annexation and adopted stricter data center rules, while Pima County imposed a 120-day moratorium, but Project Blue continues after Beale revised its cooling plans and secured county support.
Arizona's rapid data center growth is facing escalating resistance because of the state's water scarcity, increasing power demands and environmental pressures. The article contrasts new hyperscale facilities with Taiwan Semiconductor Manufacturing Co.'s large Phoenix-area investment, which has generally received community support despite consuming substantial municipal water.
The main focus is Project Blue, a proposed 600-megawatt facility that Beale Infrastructure is developing on 290 acres in Pima County. County supervisors voted to rezone the site and sell it to Beale, but Tucson later rejected annexation amid public opposition, effectively threatening the project. Beale subsequently shifted from water cooling to closed-loop air cooling; Amazon reportedly withdrew as a tenant after the change, while construction continued.
Opponents organized protests, challenged the project in court and accused contractors of improper water use and dust-control violations. The coalition's lawsuit was dismissed, but the Pima County Board of Supervisors later enacted a 120-day moratorium on new data centers, and Tucson adopted stringent rules for data centers and other large water users. The project remains under construction despite the opposition and regulatory changes.