Tucson posts revised draft rules for large-scale data centers
Tucson has posted revised draft regulations for large-scale data centers, outlining new siting, design, noise, energy, environmental and water-review requirements as the city develops a broader framework after the Project Blue dispute.
The materials were included in the Tucson Planning Commission’s revised June 17, 2026 agenda package. They remain proposals, not enacted city law. The Planning Commission is an advisory board to the mayor and City Council, and any final code changes would require later action through the city’s legislative process.
What the proposed zoning rules would cover
The revised draft defines a large-scale data center as a facility, group of facilities or portion of a facility on a contiguous site with the same controlling ownership interest that has more than 25,000 square feet of floor area or uses more than 20 megawatts of energy. The draft says these facilities would be permitted through adoption or a major amendment of a Planned Area Development or Planned Community Development and would be subject to specific standards.
The draft would require a site to be at least one-half mile from specified residential zones and one-half mile from educational or residential uses, including nursing homes and residential-care facilities. It would also require a 1,000-foot separation from commercial and office zones. Natural areas, riparian corridors or open space could warrant separation of up to one-half mile after review of an Environmental Resource Report.
Buildings would be limited to 50 feet in height. Lot coverage would be limited to 40%, with the remaining land generally dedicated as natural open space and reserved in perpetuity. The draft also allows an off-site mitigation plan with at least a two-to-one land-area offset if approved through the development process. Disturbed areas would have to be revegetated with native plants.
The proposal would require enhanced landscape borders of 40 feet. Public notices for required neighborhood meetings and hearings would go to property owners within one-half mile of the proposed rezoning site and neighborhood associations within two miles.
Noise, generators and environmental review
Applicants would have to submit a baseline noise study and noise-contour exhibits signed and sealed by an independent acoustic engineer. The study would address decibel levels, frequency and infrasound. Generators and other noise-producing mechanical equipment would require solid walls, rooftop screening or other sound-blocking measures.
The draft says generators would be for backup use and would limit their operation to emergencies, utility requests, grid instability, outages, maintenance and testing. It also proposes battery backup, documentation of an adequate energy supply and disclosure of the proposed energy mix, including renewable sources.
An Environmental Resource Report would identify the most appropriate development area and inform decisions about lot coverage, open space and possible mitigation. The draft also includes a requirement for an on-site neighborhood liaison if city staff request one after the facility begins operating.
How the proposed water review would work
The zoning draft would require applicants to certify access to an adequate water supply. A data center would have to comply with Tucson’s Large-Quantity Water Users Ordinance when applicable. If that ordinance did not apply, the draft would prohibit potable water for data-center cooling.
The associated water framework applies to new or existing Tucson Water customers expecting to use more than 7.4 million gallons per month. Qualifying users would submit a water-service application and conservation plan with information about construction phases, structures, the type of water use and projected annual, monthly and daily demand.
The conservation plan would also identify measures to reduce consumption, waste or inefficiency. If the site were within one mile of Tucson Water’s reclaimed-water distribution system, the plan would include information about the cost of connecting to that system.
The applications and conservation plans would be public records. They could be reviewed during a regular City Council meeting if the Tucson Water director determines that the proposed use has economic-development benefits consistent with city plans.
Operating limits and possible penalties
The water framework would require an updated conservation plan every five years. A user could not consume more than 120% of the amount listed in its water-service application.
Reported enforcement options would escalate for violations. A first violation of less than one year could result in charges equal to 200% of monthly water charges. Later violations could trigger charges of 500%, 1,000% or 2,000%, depending on the timing and sequence of the violations. After further violations, Tucson Water could install a restricting device at the user’s expense or suspend water access.
Those provisions describe a proposed or recently developed framework in the Planning Commission materials and related reporting; they should not be read as new final zoning requirements for every Tucson property unless and until the city completes the required approval process.
Project Blue is the immediate backdrop
The proposed rules follow the controversy over Project Blue, a planned data-center complex near South Houghton Road and the Pima County Fairgrounds. Tucson City Council rejected annexation of the site in August 2025 amid concerns that included water and electricity use. Amazon later withdrew from the project, while developer Beale Infrastructure continued pursuing the site with other potential partners, according to Arizona Daily Star reporting.
In May 2026, Tucson officials cut off construction-water access after the city said potable water obtained through a Tucson Water construction meter was transported for use outside the approved service area. The city sought reimbursement for about two acre-feet of water. Beale Infrastructure said the contractor followed standard procedure, described the authorization as a normal temporary water permit and said it was obtaining construction water from an alternative non-drinking-water source.
The cutoff did not establish that Project Blue was permanently stopped. Instead, it underscored the city’s dispute over water access while Tucson considered broader rules for future large-scale data-center proposals.
What happens next
The June 17 Planning Commission package includes the revised zoning draft, public comments, a geospatial analysis and the Large-Quantity Water Users Ordinance. The official city page identifies the Planning Commission as advisory to the mayor and City Council. Because the provisions remain proposed materials, they may change during further review, public comment or later consideration by Mayor and Council.
Sources
- City of Tucson Planning Commission: June 17, 2026 revised agenda and attachments
- Associated Press: Proposed data center prompts Tucson to regulate large water users, require conservation
- Arizona Daily Star: Tucson cuts off water for Project Blue, demands payback
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