The Tucson city council voted unanimously to reject Amazon's planned Project Blue AI data center campus, while locals cheered the decision.

Mayor Regina Romero said that the city would also look to place limits on future data centers "to protect Tucson from this industry that is already here in Arizona."

Led by development firm Beale Infrastructure, Project Blue is a 290-acre site that was set to initially host three data center buildings. Reports suggested that up to 10 buildings totaling two million sq ft (185,805 sqm) and 600MW were ultimately planned.

Beale, owned by alternative investment asset company Blue Owl, was the public face of the project, with Amazon Web Services' involvement accidentally released to local publication Arizona Luminaria.

The data center has been under discussion by local officials since at least 2023, according to emails between county administrators and real estate investment firm Diamond Ventures. The county has been under a non-disclosure agreement since at least June 2024.

Local protestors criticized the lack of transparency and secrecy about the project, which was set to see its first data center go live in 2027.

Also in contention was the news that the site would use drinking water for its cooling systems for at least the first two years of operation until it could switch to using treated wastewater once a new water line was completed. That line would combine reclaimed water with treated, previously-contaminated water from a Superfund site.

Arizona is in the midst of a lengthy drought, with the state recently passing legislation to restrict water usage.

Local opposition group No Desert Data Center was formed to mobilize residents against the project over its water use and potential impact on the area.

"The rejection of Project Blue by Tucson City Council is a huge victory for our desert community and would not have happened without thousands of Tucsonans coming out to vehemently oppose it," the group said in a statement.

"We thank the Mayor and Council for standing strong and not folding to Beale's intimidation tactics and greenwashing propaganda. Tucson made the right decision to halt Amazon's harmful data center in its tracks and protect our water, air, and a liveable climate. We will remain vigilant because we know big corporations like Amazon, Beale, and TEP have a hard time taking no for an answer, and we are committed to stopping any data center they try to force on us within our watershed."

Project Blue was set to be the first of three data center projects, with another in Tucson and one in the Marana area to the north of Tucson. The status of those developments is now unclear.

DCD has contacted Beale for comment.

Update: Brendan Gallagher, Beale's SVP of development, said in a statement: “We are disappointed in the decision not to pursue this opportunity for Tucson. We partnered closely with municipal engineering teams and Tucson Water to develop plans directly compatible with Tucson’s Climate Action and Adaptation and One Water plans.

“We see it as a missed opportunity for the city, as this project potentially represents tens of millions of dollars in tax revenue, hundreds of millions of dollars in infrastructure to serve the community, and thousands of high-paying local and union jobs.”