Project Blue in Tucson, Arizona Secures Utility Connection

The Arizona Corporation Commission has approved an energy-supply agreement between local utility Tucson Electric Power (TEP) and the company behind Project Blue, a controversial data center development being advanced in Tucson, Arizona.

TEP was approved to supply power to the project under a contract that keeps customer rates unchanged. According to TEP, the agreement will make sure that the existing customers “pay their own way and pay for their service. Basically, the agreement outlines a number of protections that ensure other customers won’t be subsidizing or paying for service to this project,” said TEP spokesperson Joe Barrios.

Despite the approval of the utility connection, the project has faced significant opposition from local residents, who have criticized the lack of transparency and secrecy about the project, which was set to see its first data center go live in 2027.