Beale drilling two wells at Project Blue data center site
Beale Infrastructure is drilling two new wells at its Project Blue data center site in Tucson, Arizona, to secure groundwater for its operations. This follows past water-related issues and a renewed agreement with Pima County requiring water rights and a closed-loop cooling system, amidst ongoing environmental concerns like dust mitigation and opposition from the Tucson City Council regarding city water use.
Beale Infrastructure is proceeding with its Project Blue data center in Tucson, Arizona, by drilling two new wells to source groundwater. This development follows a complex history of water-related challenges at the site near the Pima County Fairgrounds. In December, Beale and Pima County finalized a renewed agreement, which mandates the company secure water rights through the Arizona Department of Water Resources and implement a closed-loop air-cooled system for cooling.
The Tucson City Council previously voted unanimously in August 2025 against any city involvement, effectively preventing the data center from utilizing municipal water, which would have been treated wastewater. Documents show Bobcat Tucson Water LLC, associated with the project, received permits from the ADWR in January to draw up to 96.5 acre-feet of water annually. Beale estimates daily usage for the facility at 15,000-20,000 gallons, primarily for the initial fill of the cooling system and domestic purposes, maintaining that this approach is water-conscious.
However, the project has faced recent environmental compliance issues. Tucson City Manager Tim Thomure issued a stern letter to contractor AMES Construction after discovering the use of city water for dust control without authorization. Subsequently, the Pima County Department of Environmental Quality threatened fines for inadequate dust mitigation. In response, Beale stated cooperation with inspections and a temporary pause on site work to formalize a non-potable water source, while AMES Construction attributed violations to the revocation of the city water meter.