TUCSON, AZ (August 7, 2025) The Tucson City Council voted unanimously Wednesday to end negotiations on Project Blue, a proposed data center tied to Amazon. The decision removes the annexation and development agreement from future agendas, effectively halting one of the most significant development proposals ever considered by the city.
Project Blue involved a plan to annex 290 acres of unincorporated Pima County land into Tucson to access city water supplies for the facility. With the vote, the developer may now consider other sites outside city limits.
Key Reasons for the Rejection
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Environmental Concerns: Council members raised alarm over the project’s projected high water and energy consumption in a desert climate. For instance, one council member noted Tucson’s firm commitment to transparency and said, “Giant corporations prefer to operate in the shadows, but Tucson is not for sale.”
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Lack of Transparency: The approval process had been conducted mainly under a veil of secrecy, with non‑disclosure agreements limiting public knowledge and scrutiny. Many residents and officials later criticized this as unacceptable for such a significant development.
City officials indicated they will begin drafting ordinances and zoning rules to regulate large water users and update zoning requirements for potential future data center developments. These measures could be brought to the mayor and council as early as August 19.
See more information on Project Blue here Project Blue: Transformational Data Center Campus Proposed for Southeast Tucson - Real Estate Daily News