TUCSON, Ariz. (KGUN) — Project Blue, a large data center proposed for near the Pima County fairgrounds, promised to build a pipeline for reclaimed water big enough to serve other users besides itself. But a draft of the contract with the city raised questions about whether the city would pay a share of pipeline costs after all.
Who will really pay that bill?
Project Blue will need a lot of power to run its computers and electronics, and a lot of water to cool them—so much that critics worry it’s a project that just does not belong in our hot, dry desert.
The city says the region can cover the project's power and water needs but critics are still unconvinced.
They are also leery of the secrecy behind Project Blue.
The City of Tucson is still bound by a non-disclosure agreement that forbids revealing who will actually operate the data center.
One thing not under wraps was a promise from Beale Infrastructure, the company building the project. That was to build a pipeline 18 miles long to bring reclaimed water to cool the center, and to oversize it so the city could have extra capacity for other projects. The understanding was Beale Infrastructure would cover the entire pipeline cost.
But when the City of Tucson put the draft development agreement on line we saw this on page 9. It says, in part:
“...In the event the City requests the Developer to oversize the Reclaimed System Extension beyond the capacity required for the Developer’s Projects (“Reclaimed Oversizing”), the City agrees to reimburse Developer for the portions of the Reclaimed System that are oversized….”
So is Project Blue paying to build the City of Tucson an oversized water line or not?
City Manager Tim Thomure says yes, and the language was in the contract in case the city wanted to go even bigger than the oversized line Project Blue was willing to pay for.
Thomure says, “We often will oversize capacity in infrastructure being built by somebody, and that is a way to get excess capacity at a moderate cost to the city in order to meet an unmet need. In this case, I need to be exceptionally clear. Project Blue will pay for the full cost of the pipeline to meet their needs, plus excess capacity of 2 million gallons per day.”
Thomure says there’s no need for the city to go beyond the oversizing Project Blue’s agreed to cover.
The attorney for Beale Infrastructure says, in part:
“Project Blue’s design includes oversizing of the reclaimed water infrastructure, for which it will not seek City of Tucson contributions. While the draft Development Agreement included a clause enabling potential City-funded oversizing beyond the agreed amount, that option is no longer under consideration and drafts will be updated accordingly….”
The city council is not scheduled to make a final decision on Project Blue until November.
There will be a series of meetings before then including one requested by Ward 4 Councilmember Nikki Lee. It will be Wednesday, July 23, between 5 and 7 p.m. at Mica Mountain High School In Vail, 10800 E Valencia Rd.
