MOA between County and Beale Infrastructure Ensures Water, Energy, and Economic Commitments for Houghton Data Center Project

PIMA COUNTY, ARIZONA (December 17, 2025) — The labor agreement for the Houghton Road data center project will be between Beale Infrastructure’s selected general contractor and the applicable unions. It will follow the terms of the North American Building Trades Unions (NABTU). This agreement will outline the commitments made regarding the use of union labor on the project.
Pima County Board of Supervisors Chairman Rex Scott has issued a letter clarifying the purpose, scope, and enforceable provisions of the binding Memorandum of Agreement (MOA) between Pima County and Beale Infrastructure regarding the proposed Houghton Data Center project. The binding Memorandum of Agreement governing the project follows the City of Tucson’s decision not to annex the site. The agreement establishes enforceable requirements related to water use, energy supply coordination, renewable energy commitments, and economic impacts.
The project was initially structured with the expectation of coordination between two jurisdictions, with certain commitments anticipated to be addressed through a development agreement with the City of Tucson. After annexation was denied, Pima County entered into a binding contract to ensure that the developer’s representations and commitments would be formally documented and subject to defined compliance mechanisms.
The MOA significantly modifies earlier assumptions related to water use. The agreement requires the data center to operate a closed-loop cooling system that recirculates minimal quantities of water. The Arizona Department must approve any water use associated with the project of Water Resources and must comply with Pima County’s Preliminary Integrated Water Management Plan.
Given the project’s energy demands, Beale Infrastructure and Tucson Electric Power (TEP) were required to submit an Energy Supply Agreement to the Arizona Corporation Commission. That agreement applies only to the first phase of the project. Additional Energy Supply Agreements will be required for each subsequent phase. Under the MOA, TEP will serve the project using existing or currently planned resources, and Beale is required to meet financial and operational safeguards designed to protect other ratepayers.
The MOA also establishes a defined compliance framework for Beale’s commitment to match one hundred percent (100%) of its energy consumption with renewable energy. While municipalities lack the authority to regulate or compel utility operations, Beale has reaffirmed its commitment to renewable energy sourcing. Implementation of that commitment is dependent, in part, on county review and approval of proposed renewable sources, applicable permitting for supporting infrastructure, and regulatory processes outside the county’s direct control.
An independent, qualified third-party verifier, approved by both Beale Infrastructure and Pima County, will conduct annual verification to confirm whether the project’s energy usage has been matched with renewable energy as proposed.
Economic terms are a central component of the agreement. Beale will pay Pima County approximately $21 million for the sale of the project site. The County Administrator will engage the Board of Supervisors in determining the appropriate use of those proceeds to support county services and infrastructure.
The project represents a $3.6 billion capital investment—the largest of its kind in Pima County’s history. The development is projected to generate approximately $58.8 million in county tax revenues over ten years, in addition to increased revenues for local school districts and the State of Arizona.
The project is expected to create more than 180 full-time permanent jobs and over 3,000 construction jobs. Construction employment is expected to be filled primarily by local and regional skilled trades, including workers who currently commute outside the county for similar projects.
Public input on the project has included both support and opposition, with concerns raised regarding technology, water resources, and environmental impacts. The MOA establishes enforceable standards intended to balance economic development with environmental stewardship and public accountability, while acknowledging the regulatory limits of county authority.
Pima County will be responsible for monitoring compliance with the Memorandum of Agreement and ensuring that the provisions within its jurisdiction are implemented as outlined.


