Full Breakdown
Arizona Communities Clash with Data Center Expansion Over Water, Heat and Power Concerns
6/28/2026, 12:52:59 AM
Arizona Data Center Controversy Amid Drought and Heat
Two large data-center projects—Project Blue (a $3.6 bn facility on Tucson’s southeast edge and a $5 bn site in Marana) and the La Osa complex (initially 59 centers, later scaled to 11) – are advancing despite intense local opposition. The projects would become among the city’s largest water and electricity consumers.
Historical Drought and Water Allocation
Colorado River flows have fallen about 20 % since 2000, and state officials warn Tucson could face water cuts of up to 77 % as the basin endures a 30-year extreme drought. A three-decade Supreme Court case and subsequent congressional allocation gave California a larger share of the river, limiting water available for Arizona municipalities.
Key Stakeholders
- No Desert Data Center (activists Marisol Winfrey Herrera, Vivek Bharathan) – leads opposition.
- Beale Infrastructure (San Francisco-based owner of the projects) – has not responded to media inquiries.
- Tucson City Council (Kevin Dahl, Andres Cano) – voted against providing water and power to Project Blue.
- Pinal County Supervisor Rich Vitiello – voiced concerns about rising power bills.
- Governor Katie Hobbs – argues data-center industry is essential and seeks a larger Colorado River water share.
- Arizona Department of Water Resources (ADWR) – issues permits and promotes conservation.
- Tucson Electric Power (TEP) – proposed rate hikes of 10 % in 2023 and 14 % in 2025; TEP and Trico announced a 7.23 % increase in early 2025.
Quantitative Overview
- Project Blue would occupy 290 acres; the Marana site spans 600 acres.
- Projected tax revenue: ? $250 million over ten years.
- Construction jobs: “a few thousand” during building; permanent jobs: “a few hundred” (Council statements).
- ADWR permits allow a well delivering ? 31,000 gal yr?¹ for on-site toilets and kitchen use, to be recycled.
- ASU measurements show waste heat from data centers raises downwind temperatures by 1.3–1.6 °F on average, up to 4 °F near some facilities.
- One center’s waste heat equals that of ~40,000 households.
Implications for Communities and Environment
Reduced water availability threatens residential supply and agricultural irrigation. Heat-island effects from air-cooled condensers increase neighborhood temperatures, driving higher air-conditioning demand and further electricity consumption. Latino outdoor construction workers, who comprise over half the regional construction workforce, face heightened heat-related health risks; 23 % of heat-related deaths in Maricopa County were among Latinos in 2023.
Government and Agency Responses
ADWR officials emphasized Arizona’s “tradition of conservation,” noting lawn-curtailment programs and deep groundwater reserves that prioritize residential use over industrial extraction. Governor Hobbs has urged the Bureau of Reclamation to allocate a larger Colorado River share to support “essential industry” including data centers. TEP justified its rate proposals as necessary for grid upgrades and capacity expansion.
Opposition Voices
Activists argue that data centers consume water at rates comparable to large farms yet are exempt from replenishment requirements, adding a “straw to the aquifer.” Lee Ziesche (Democratic Socialists of America) warned of higher temperatures and utility rates. Jackie McGuire (Marana resident) described projected heat as “like one to two million space heaters,” fearing the town could become “uninhabitable.”
Community Experiences
Marisol Herrera’s three-year-old daughter Jo practices water-saving habits at daycare, reflecting household concerns. In north Phoenix, a Latino construction worker reports working without health insurance on a site the size of 71 football fields, while his family’s electric bill reached $500 during a record-hot summer.
Discrepancies and Gaps
- Water-use estimates differ: activists cite high consumption, while Eric Kuhn (Colorado River Water Conservation District) notes data-center use is lower than that of alfalfa and hay farms.
- Job forecasts vary between “few thousand” construction roles and “about 100” permanent positions.
- The long-term health impact on outdoor workers remains unquantified.
Verbatim Quotes
- “We are in the middle of a 30-year drought, which is now an extreme drought,” — Lisa Shipek, co-executive director, Watershed Management Group
- “We say Not One Drop for data centres,” — Marisol Winfrey Herrera, No Desert Data Center activist
- “The heat generated will be like one to two million space heaters,” — Jackie McGuire, Marana resident activist
- “and they’re going to become even more necessary going forward.” — David Sailor, director, ASU School of Geographical Sciences and Urban Planning
- “I’m worried about the constituents in that area, about the power bills going up, even though you’re saying that they’re going to pay for it,” — Rich Vitiello, Pinal County Supervisor
Future Outlook
Governor Hobbs’s re-election campaign and a proposed termination of a $38.5 million state tax incentive for data centers could reshape incentives. ASU researchers plan expanded temperature monitoring to inform micro-climate models and mitigation strategies such as greenbelt buffers. Local advocacy groups intend to pursue additional referenda and to press for stricter water-replenishment rules before further data-center approvals.
