TUCSON, AZ (July 22, 2025) -- Project Blue is a groundbreaking economic development proposal currently under consideration by the Pima County Board of Supervisors and the Tucson Mayor and Council. With a projected investment of $3.6 billion, it would be one of the largest projects ever reviewed jointly by the City and County. The project envisions a campus of state-of-the-art data centers on a 290-acre site located north of the Pima County Fairgrounds and west of Houghton Road, within the designated Southeast Employment & Logistics Center (SELC).
PUBLIC MEETING THIS WEEK:
Learn more about Project Blue during a community information meeting on Wednesday, July 23, from 5–7 p.m., at Mica Mountain High School, 10800 E. Valencia Road.
Please note: The parking lot opens at 4:30 p.m. Do not arrive before that time, as school is in session and students and faculty must exit the campus first.
To ensure public transparency, Pima County has launched a dedicated webpage compiling available records and details that can be disclosed under a nondisclosure agreement with the developer. The City of Tucson has also published its own Project Blue webpage and FAQ, offering insight into the City's review process and current activity.
Project Blue has identified Tucson as a prime location due to its proximity to major metro areas like Phoenix, Los Angeles, and Las Vegas, making it a key interconnection point between major Western population centers.
Executive Summary
Project Blue proposes a large-scale data center campus that would deliver long-term economic, infrastructure, and environmental benefits. The campus will support the rapidly growing digital economy and is expected to play a central role in Tucson’s transition toward sustainable development as outlined in the One Water 2100 master plan. Data centers are the physical foundation of the internet, enabling nearly every sector of the economy—from Aerospace & Defense and Bioscience to Education, Financial Services, and Government.
Project Scope & Phasing
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The campus is planned on a 290-acre parcel currently in unincorporated Pima County but expected to be annexed into the City of Tucson.
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The first phase could include up to four buildings, with future capacity for as many as ten data center facilities.
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The first building could be operational by 2027, with construction anticipated to begin in 2026.
Site Suitability & Environmental Review
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The selected site is near high-voltage transmission lines and is not adjacent to residential neighborhoods.
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Project Blue includes measures to meet Pima County Scenic Route requirements, utilize drought-tolerant buffers, and minimize noise and traffic impacts.
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Biological and cultural surveys have been completed; no protected species have been found to date, with mitigation strategies in place if any are encountered during construction.
Economic Impact
An independent economic impact study estimates:
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$3.6 billion in capital investment over multiple years.
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$250 million in new tax revenue: $97M to the City of Tucson, $60M to Pima County, and $93M to the State of Arizona over 10 years.
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180 full-time, on-site jobs by 2029 with an average salary of $64,000.
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3,000 construction jobs are expected during the initial buildout from 2026 to 2028.
Energy & Grid Reliability
Tucson Electric Power (TEP) is a key factor in the project's site selection due to its commitment to renewable energy and grid modernization. Project Blue’s long-term agreement with TEP will:
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Support grid upgrades that enhance system reliability for all customers.
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Help stabilize energy rates without shifting costs to existing ratepayers.
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Be powered in part by new solar and energy storage facilities aligned with the City of Tucson’s Tucson Resilient Together climate action plan.
Water Stewardship & Reclaimed Water Infrastructure
Project Blue is committed to 100% use of renewable, reclaimed water for its operations. The initiative will significantly enhance Tucson’s reclaimed water infrastructure while minimizing environmental impacts.
Key Components:
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Reclaimed Water System Expansion:
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An 18-mile pipeline oversized to serve future developments and convert existing potable customers to non-potable sources.
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A new 30-acre aquifer recharge facility that will support regional water supply reliability and offer potential recreation benefits.
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Water Replenishment Commitment:
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The developer will offset all consumptive water losses by funding measurable water replenishment projects in partnership with Tucson Water.
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On-Site Efficiency:
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Advanced cooling systems will use outside air and minimal water during cooler months, supporting leading-edge operational sustainability.
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The reclaimed water allocated to Project Blue has been planned for future development and will not reduce the availability of reclaimed water to other users, including the Santa Cruz River Heritage Project (SHARP).
To learn more: