Arizona Corporation Commission Greenlights Power Plan for Tucson Data Center
The Arizona Corporation Commission has given the go-ahead for Tucson Electric Power (TEP) to power a new data center project known as Project Blue in Tucson. The Pima County Board of Supervisors had earlier approved the sale of a 290-acre plot of land for the development.
Project Blue, spearheaded by Beale Infrastructure, aims to be operational by 2027. Initially, city of Tucson water was proposed to cool the facility, but this plan was dismissed by local authorities. For more details about the initial proposal, visit this link.
The commission’s decision was reached with a 4-1 vote. Commissioner Rachel Walden was the only dissenting voice, expressing doubt over the project’s viability. “If Google, Amazon or Microsoft were here today, I’d be questioning them. I’d be directing all these questions at them. What are you going to do to pay for it?” she stated during the hearing. Walden also highlighted that the project’s energy requirement of nearly 300 megawatts could power up to 270,000 homes.
Community concerns over the project were evident as residents protested against it during meetings in Tucson. The project was linked to Amazon Web Services, a fact that became public only after intense scrutiny. However, recent reports suggest Amazon has withdrawn from the project. More details about Amazon’s involvement can be found in public records obtained here.
During the hearing, questions were raised about potential rate impacts and whether the facility would be required to pay additional fees for the increased power demand. Erik Bakken of TEP assured that existing resources were sufficient to support the data center without affecting customer rates, stating, “As it stands today, we believe we’ve got a gold standard, special contract for a data center with existing resources and existing capacity.”
Numerous attendees voiced their opposition, citing concerns over transparency and the strain on Tucson’s electrical capacity. Vivek Bharathan from No Desert Data Center urged the commission to reject the proposal, questioning the clarity of the project’s details and its customer base.
The approval from the Arizona Corporation Commission allows the agreement between Beale Infrastructure and TEP to progress, although the future of Project Blue remains uncertain without a clear operator.
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