TUCSON, Ariz. (KGUN) — The Chamber of Southern Arizona has thrown its support behind Project Blue, a $3.6 billion three-phase data center development that leaders say would be the largest economic project in Southern Arizona’s history.
The planned technology campus, proposed by Beale Infrastructure, aims to meet rising national demand for digital infrastructure by building data centers in the Tucson area. The first phase could open by 2027 at Pima County’s Southeast Employment and Logistics Center on South Houghton Road near the fairgrounds.
Data centers store and process information critical to nearly every major industry in the region, from aerospace and defense to bioscience, manufacturing, education and government.
“With significant capital investment and tax revenues to both Pima County and the City of Tucson, this $3.6B project would be the single largest economic development project in Southern Arizona’s history,” said Joe Snell, president and CEO of The Chamber of Southern Arizona. “In addition, the substantial infrastructure investment by Project Blue in energy and reclaimed water infrastructure improvements benefit each and every citizen here in the region. This project is a win-win for everyone.”
The Initial Phase alone is projected to generate $250 million in new tax revenue over 10 years. If fully built, Project Blue could create four times the number of permanent jobs and more than triple the economic impact of the first phase, according to the Chamber.
Beale Infrastructure plans to invest more than $100 million in privately funded reclaimed water improvements, including an 18-mile reclaimed water line extension and a 30-acre aquifer recharge facility near the fairgrounds.
“The unique fact about this development is that the site will become water positive, supplying reclaimed water to the Los Reales Sustainability Campus and replenishing the underground aquifer near the Fairgrounds site,” said Fletcher McCusker, treasurer of The Chamber of Southern Arizona and chair of the Rio Nuevo District. “We should stand for sustainability developments of this scale and set ourselves apart from communities without those sustainability priorities.”
The company says the project will ultimately use 100% renewable water resources and fully replenish what it consumes.
Project Blue has also committed to funding all Tucson Electric Power grid upgrades required for the development, preventing those costs from falling to other utility customers. TEP improvements are expected to improve overall grid reliability across the region.
Officials emphasized that in addition to creating jobs and infrastructure upgrades, the project will generate revenue to help fund local priorities like public safety, housing affordability and other community services without raising taxes on residents.
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Kenny Darr is a reporter for KGUN 9. He joined the team in January 2023. Before arriving in Arizona he was an Anchor and Reporter at KADN in Lafayette, LA. Share your story ideas with Kenny by emailing kenny.darr@kgun9.com or by connecting on Facebook, Instagram or Twitter.
