The following is the opinion and analysis of the writer:
Rocque Perez
Since my appointment to the Tucson City Council, I’ve committed to making decisions with immense care. That doesn’t change just because a project is big, complicated, or controversial. And Project Blue is all three.
In recent weeks, the City of Tucson and Pima County have released detailed information about Project Blue — a proposal to turn nearly 300 acres of county-owned desert near the County Fairgrounds into a massive data center. The County has already approved the land sale and zoning changes. Now the City is being asked to bring the property into Tucson’s boundaries and approve a development agreement outlining expectations for jobs, infrastructure, water use, and environmental safeguards.
The project would be led by Beale Infrastructure, a company with no finished projects to date. Tucson’s data center would be one of its first. Beale is backed by Blue Owl Capital, an investment firm focused on digital infrastructure.
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We’re told this project could bring about $3.6 billion in construction spending and create at least 180 full-time jobs with average pay of $64,000. It would use treated recycled water — rather than drinking water — for its cooling needs and would build systems to return more water to the local groundwater supply than it uses. That’s known as being “water positive.”
The developer has agreed to pay for all electricity upgrades needed for the site, rather than shifting those costs onto us. To date, no private project in Tucson’s history has made this level of investment in recycled water infrastructure — building 18 miles of pipeline, nine water recovery wells, a new booster pump, and a 30-acre recharge site, all of which would be turned over to the City. It could also support efforts to address PFAS — industrial chemicals found in parts of our since isolated water systems.
While this wouldn’t be Tucson’s first data center, it would be the largest. Unlike many large developments that ask for tax breaks or exemptions, this one doesn’t. Instead, it would begin generating property taxes to the benefit of Vail Unified School District, City, County, and the State — helping support public education, libraries, roads, transportation, housing, public health, and other services.
But for a project of this significance, questions remain:
Who will operate the facility? Beale is building it but won’t run it. It could be leased to any major tech company — Amazon, Microsoft, Google, or Meta. These companies have very different records when it comes to workers’ rights, privacy, and environmental impact. We don’t yet know who the end user will be.
What kind of computing will take place? At first, many people feared this would be an AI facility — known for using immense power and water. Recent statements suggest use for cloud services are more probable, which are less resource-intensive and support everyday digital tools. But that’s not confirmed, and the difference matters.
How will promises be enforced? Plans to use renewable energy, recycled water, and return more water than is used are encouraging, but they only matter if there are consequences for failing to follow through. Some penalties for water use are now in the agreement, but others — like commitments around emissions, energy, or community impact — remain vague or voluntary.
In Ward 5, these concerns are personal. Our neighborhoods have carried the health and environmental costs of industry without sharing in the benefits. That history should matter when evaluating developments nearing our South Side.
As the youngest municipal official in Arizona — and one of the youngest in Tucson’s history — I also think about the long term. Not just next year, but what Tucson will look like in 10, 20, or 50 years. My generation will live with the consequences of climate change, shrinking resources, and growing corporate influence.
That’s why I’m not offering a “yes” or “no.” I’m saying there’s work to do before I’m ready to decide. Many other cities have set a stronger bar — through community benefit agreements, enforceable labor standards, and robust climate policies — before greenlighting data centers. We can, and should, do the same.
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Rocque Perez serves as the Council Member for Ward 5 in the City of Tucson. He is the youngest municipal official in Arizona and is a committed advocate for public education, civic participation, and economic equity.
