TUCSON, AZ (August 11, 2025) -- An Arizona land developer, Vermaland LLC, has unveiled an ambitious plan to transform around 3,300 acres of land in Pinal County—located midway between Phoenix and Tucson—into a sprawling data center and energy hub.
The project, dubbed the La Osa Project, is expected to cost up to $33 billion and could deliver a staggering 3 gigawatts (GW) of power capacity—enough to outpace the current data center capacity across the entire Phoenix metro area.
The development lies next to a Qualified Opportunity Zone, offering investors potential tax advantages, including reductions in capital gains taxes for longer-term holdings. Vermaland envisions a hybrid energy setup combining solar, natural gas, battery storage, and grid connections to support continuous operations. Preliminary plans call for a gas-fired power plant in early phases, transitioning to solar power as those facilities come online.
Vermaland’s rezoning application seeks to reclassify portions of the site from low-density residential and open space to zones for employment, public facilities/services, and significant open space. The site plan earmarks roughly 1,910 acres for data centers and employment uses, 480 acres for utility or power generation purposes, and 983 acres preserved as open space to protect ecological corridors and wash systems.
During a July 17 informational session, Pinal County's Planning & Zoning Commission reviewed the proposal but raised concerns about environmental impacts, wildlife preservation, flood risks, and the technical feasibility of servicing such a vast site. Vermaland anticipates construction could begin in two to three years, with a full build-out over a decade.
If approved, the La Osa Project would become the largest data center development in U.S. history, positioning Arizona’s corridor—and specifically Pinal County—as a new powerhouse in AI infrastructure and digital infrastructure growth.
In contrast to Project Blue, the proposed La Osa Project in Pinal County and the canceled Project Blue in Tucson differ sharply in scale, infrastructure, and sustainability strategies. La Osa spans roughly 3,300 acres between Phoenix and Tucson, envisioned as the largest data center and energy hub in the nation with up to 3 gigawatts of capacity. Its phased energy plan begins with a gas-fired power plant and transitions to a hybrid system incorporating solar power, battery energy storage, and grid connections. While La Osa promotes water-efficient cooling, its primary focus is on power generation rather than water sustainability. Project Blue, by contrast, was a 290-acre proposal near the Pima County Fairgrounds that emphasized becoming “net water positive” through reclaimed water cooling and conservation offsets, aligning with Tucson’s climate goals. However, Project Blue’s energy plan was less publicly defined, and despite pledges of environmental responsibility, it faced intense community opposition over water and energy use. On August 6, 2025, the Tucson City Council voted unanimously to halt Project Blue, while La Osa remains under review and continues to advance through the rezoning process.