Ames Construction Took 650,000 Gallons of Tucson Water for Project Blue as Data Center Conflicts Spread
Updated
Updated · Fortune · May 13
Ames Construction Took 650,000 Gallons of Tucson Water for Project Blue as Data Center Conflicts Spread
4 articles · Updated · Fortune · May 13
Tucson shut off a construction meter after finding Ames Construction had hauled about 650,000 gallons of city water to the Project Blue site for dust control outside city limits without authorization.
City Manager Timothy Thomure ordered developer Beale Infrastructure to replace the two acre-feet used, saying the meter application covered use only within Tucson Water’s service area, not transport to the project site.
Beale said the city had issued temporary water approval, but Tucson said the contractor never disclosed the water would be taken beyond city limits to a project the council had already rejected over water and power concerns.
The dispute highlights a broader tactic of siting data centers just outside municipal boundaries to avoid Arizona’s 100-year water-supply requirement while still leaning on nearby infrastructure in an increasingly water-stressed region.
Fortune linked the Tucson case to a parallel Georgia dispute in which QTS used more than 29 million gallons through unauthorized or unmetered hookups, underscoring rising scrutiny of data center water use nationwide.
When data centers pay for improperly taken water, is it a penalty or just a business cost?
With dozens of cities banning data centers, can new laws truly control their resource drain?
As the AI boom's thirst for water grows, which communities will be left dry?
Tucson’s Project Blue Water Scandal: Unauthorized Use, Community Outcry, and New Oversight for Data Centers Amid Arizona’s Water Crisis
Overview
The City of Tucson discovered that Ames Construction was using city water for dust control at the Project Blue site, despite the City Council and Mayor Regina Romero having unanimously rejected the project last year. City officials, including City Manager Tim Thomure, were surprised by this unauthorized use and quickly responded by sending a letter to Beale, the developer, demanding accountability. As of May 5, 2026, Beale had not replied, prompting the city to consider further legal steps. This incident highlights Tucson’s firm stance on upholding its decisions and protecting public resources from unauthorized use.