ACC greenlights energy agreement for TEP to power Project Blue data center

• The Arizona Corporation Commission approved an energy supply agreement between Tucson Electric Power and the developers of a controversial data center • Developers of the data center have been scrutinized for the project’s secrecy • The vote comes after Tucson City Council rejected the project earlier this year

The Arizona Corporation Commission voted on Dec. 3 to approve an energy supply agreement between Tucson Electric Power and the developers behind a controversial proposed data center dubbed “Project Blue.”

The data center is planned for development on unincorporated land in Pima County by Beale Infrastructure and Humphrey’s Peak Power. It has been the center of controversy in southern Arizona for most of 2025 in part due to the developers’ secrecy, their attempts to use water