A year later, here's where Tucson's controversial Project Blue data center project stands

A year later, here's where Tucson's controversial Project Blue data center project stands

News ClipAZPM News·Tucson, Pima County, AZ·8/10/2026

The Tucson City Council has adopted new regulations for large-scale data centers one year after rejecting 'Project Blue' due to community outcry. These regulations establish new land use requirements, including size limits and proximity restrictions, but stop short of a moratorium. Meanwhile, Pima County is considering a 120-day moratorium on data centers in unincorporated areas.

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Gov: Tucson City Council, Pima County Board of Supervisors, City Attorney, Tim Thomure

One year after rejecting the annexation of land for 'Project Blue' amidst significant community opposition, the Tucson City Council has adopted new regulations for large-scale data center developments within city limits. Reporter Katya Mendoza of Arizona Public Media explained that these new code amendments define large-scale data centers as facilities exceeding 25,000 square feet or using more than 20 megawatts of energy, requiring special zoning permits. Buildings are capped at 50 feet and must be located at least half a mile from residential zones and 1,000 feet from commercial zones.

Community members have consistently voiced strong concerns over water usage, extreme heat, natural resource impacts, and property values, particularly given ongoing Colorado River negotiations. Despite calls for a complete ban, the City Council did not enact a moratorium, citing state law (Prop. 207, the Private Property Rights Protection Act) which mandates compensation to property owners if new land use laws reduce property values. However, the council is exploring legal options for a potential future ban.

The 'Project Blue' controversy began last year when the Pima County Board of Supervisors approved the project without identifying the end-user, leading to transparency concerns. Although Tucson City Council rejected the annexation necessary for the project to proceed with city water, 'Project Blue' is still breaking ground, with the community acting as 'watchdogs' regarding its water sourcing. This week, the Pima County Board of Supervisors is set to consider establishing a 120-day moratorium on data centers in unincorporated areas to allow for a zoning code amendment process.