Tucson data center water use approved with rules

News Clip2:04News 4 Tucson KVOA-TV·Tucson, Pima County, AZ·5/29/2026

The Arizona Department of Water Resources has approved two commercial well applications for the Houghton Road data center project, also known as Project Blue, in Tucson. The approval comes with specific rules, limiting water use to 96.5 acre-feet per year (approximately 31 million gallons) for purposes like drinking water, fire suppression, and dust control. Critics will be addressing the approved water usage.

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Gov: Arizona Department of Water Resources

The Arizona Department of Water Resources (ADWR) has approved two commercial well applications for the Houghton Road data center project, previously known as Project Blue, located on Tucson's southeast side. News4's Andrew Capaso reported live from the site, noting the visible construction equipment.

The approval comes with specific rules regarding water usage, a long-standing controversial aspect of the project. The ADWR document limits the project to 96.5 acre-feet of groundwater per year, equivalent to approximately 31 million gallons, which could fill almost 50 Olympic-size swimming pools. Bobcat Tucson Water LLC, the applicant, stated in its application that the water would be used for drinking water, fire suppression, and dust control, which the ADWR deems "reasonable and beneficial use." The company will be required to report its water use annually to the state, and failure to comply with usage categories or limits could result in the approval being revoked.

The project's developer, Beiel Infrastructure, plans to use less than the approved maximum of 31 million gallons annually. Critics of the project, however, are expected to voice their opinions on this water usage, with further details to be discussed in upcoming news segments.