Tucson revokes water access for Project Blue contractor, seeks water credits

Tucson revokes water access for Project Blue contractor, seeks water credits

News ClipKGUN 9·Tucson, Pima County, AZ·5/5/2026

The City of Tucson has revoked water access for Project Blue, a proposed data center, after discovering a contractor was hauling city water to the site for dust control. This action follows the mayor and council's previous unanimous decision to reject involvement with the project. The city is also demanding 2 acre-feet of water credits for restitution.

watergovernmentopposition
Gov: City of Tucson, Tucson Water
The City of Tucson has issued a formal order to developers associated with 'Project Blue,' a proposed data center development south of the city, to cease using Tucson's water supply. The action was taken after city officials discovered that the contractor, Ames Construction, had been transporting water from the city's system to the data center site near South Houghton Road for dust control. In a letter, city officials informed the developers that a construction water meter obtained by Ames Construction was revoked, effective April 24. This move is consistent with a prior unanimous decision by the mayor and council to withhold any involvement or support for the Project Blue data center. The city has emphatically stated it will not provide any municipal resources, including its water supply, for either the construction or future operation of the project. Furthermore, Tucson is seeking restitution from Project Blue's developers, demanding the transfer of 2 acre-feet of water credits to Tucson Water at no cost to compensate for the water already utilized.