Tucson says Project Blue developer owes the city water after revoking permit

Tucson city leaders, who last year rejected the Project Blue data center due to community concerns about water and power, have revoked a water permit issued to a contractor working on the project. Despite the city's rejection, developer Beale Infrastructure secured zoning approval from Pima County and announced plans to build the data center with an air-cooling system instead of water-cooling. However, a recent discovery by protesters revealed that a contractor was using Tucson water to spray down dust at the construction site. The city manager subsequently sent a strongly worded letter to Beale Infrastructure, withdrawing the permit and demanding two acre-feet of water in credits. Beale Infrastructure stated they were unaware of any wrongdoing, asserting that their contractor applied for and received the permit from Tucson Water and that they would pay for the water used. Project Blue has been a source of significant controversy in Tucson, largely due to concerns over water consumption in an arid region facing Colorado River curtailments, as well as high energy usage. While the developer maintains the project brings economic benefits and jobs, community opposition has been fierce, though the project is still moving forward. Opponents are now researching whether Beale Infrastructure has applied for a permit to drill its own well on the site for water.