Tucson council moves to tighten rules for data centers, directs staff to end Project Blue negotiations

The Tucson Mayor and Council voted unanimously at a July study session to accelerate an ordinance to regulate large water users and to initiate zoning‑code amendments aimed at placing clear limits and review requirements on large data centers. The council also directed city staff to end active engagement on the Project Blue proposal and to take steps necessary to remove related annexation and development items from the Aug. 19 agenda.

The action came after an extended discussion in which Mayor Romero framed two tasks: deciding the future of Project Blue in Tucson and establishing enforceable guardrails for data‑center development, including a clear definition of “data center,” design and development standards, and a requirement that applications be reviewed under the zoning‑examiner legislative procedure. Romero asked the council to schedule a vote on a large‑water‑users ordinance for the Aug. 19 regular meeting.

Councilwoman Lee, who said she dug deeply into environmental and economic evidence and solicited Ward 4 residents' views, said the community was loud and clear that this type of development is not wanted in the desert. “We heard very loud and very clear what the community felt about this,” she said, arguing that water, air quality, light and noise impacts, and uncertain long‑term economic benefits weighed against Project Blue.

Vice Mayor Santa Cruz voiced similar concerns and criticized early staff processes that limited public input. “This proposal should have never made it this far,” the vice mayor said, adding that a simple no vote would not be enough and that the city must adopt guardrails to prevent similar proposals in the future.

Councilmember Boula asked the council to make explicit directions to staff to end negotiations, remove annexation and development agreement items from the Aug. 19 agenda, and withdraw intent‑to‑annex paperwork if needed; the city attorney advised that directing staff to take any necessary steps would accomplish that result. After brief comments from other council members about energy and public‑power considerations, council members voted in favor of the motion by voice and roll call; each member recorded an affirmative response on the record.

The council’s actions do not ban data‑center projects citywide but start a formal public process to define and regulate them, and they direct staff to halt active pursuit of the Project Blue agreement. The next procedural step is the public process on the zoning‑code amendments and the August 19 council meeting where a large‑water‑users ordinance will be considered.