Pima Supervisors Approve $3.6B Sale of County Land for Project Blue Data Center

The Pima County Board of Supervisors approved a contentious measure on Tuesday, permitting a developer to acquire public land for a $3.6 billion data center near Tucson. The decision, passed by a narrow 3-2 vote, included a rezoning of the 290-acre parcel, which will be sold to San Francisco-based developers for approximately $20.8 million.

The developers, known for their “Project Blue,” faced significant public resistance. Residents expressed concerns over the project’s substantial demands for water and electricity. Supervisor Jen Allen highlighted these issues, referencing feedback from labor and environmental groups in Arizona and California, indicating regrets from other cities on similar projects.

Economic forecasts for Project Blue are optimistic, estimating the creation of over 5,000 jobs during construction and operations. A report from Applied Economics predicts $250 million in tax revenue over a decade. The first phase aims to construct 2.3 million square feet of data center space, with completion expected within 24 months post-sale.

As part of the agreement, the data center must employ at least 75 workers, with an average salary of $75,000, maintaining those positions for two years. This condition is designed to ensure long-term employment prospects in the region.

Opponents of the project, including Tucson City Council staff, raised concerns about its alignment with climate initiatives. Public commentary at the meeting reflected frustration over prioritizing economic benefits over environmental sustainability.

Keri Silvyn, legal counsel for the developers, asserted that Project Blue would collaborate with Tucson Water to ensure sustainable water usage through reclaimed water systems. Yet, skepticism lingered among community members regarding the project’s true environmental impact.

While some supervisors expressed confidence in the project’s water sustainability, others remained unconvinced, citing unanswered questions. Chairman Rex Scott acknowledged the environmental concerns but emphasized the economic transformation the project could bring. He indicated that promises made by the developers could potentially set a precedent for balancing economic growth with ecological responsibility.

The next phase is contingent upon the Tucson City Council’s decision to annex the property, which would determine the finalized sale agreement. Supervisor Matt Heinz, who cast the pivotal vote, did not provide commentary during the meeting.

Supervisor Steve Christy noted that the city’s approval will ultimately be crucial, reiterating that Tucson holds significant power in the decision-making process. Meanwhile, Economic Development Director Heath Vescovi-Chiordi indicated that infrastructure improvements linked to the project would benefit the broader area.