By Beale Infrastructure
Beale Infrastructure announced an updated project design for its proposed data center project (previously referred to as Project Blue) in Pima County. The updated design, which was developed in partnership with the Pima County Board of Supervisors, incorporates air cooling technology that utilizes a closed-loop system.
The initial phase of the project is located in Pima County’s Southeast Employment and Logistics Center. (AZBEX, April 30)
“Beale is focused on bringing long-term value to the region, and we are committed to continuing to partner with stakeholders to ensure that this project reflects the community’s values and priorities. We appreciate the dialogue with the Pima County Board of Supervisors about the project plan and will be soliciting and implementing feedback from members of the community,” said Michael Nudelman, chief development officer at Beale Infrastructure. “This revised project plan is designed to the highest standard of sustainable facility operations, utilizing existing clean energy resources and incorporating air cooling technology. It will enable transformative investment in southern Arizona to meet the region’s expanding digital infrastructure needs.”
Over the past several weeks, Beale has evaluated alternative project designs with the objective of preserving the project’s commitments to sustainable design, clean energy sourcing and core economic and job-creation benefits, all while addressing feedback the community has shared. After this review, Beale selected an air cooling technology that uses a closed-loop system. This system uses minimal amounts of water that are continuously recirculated, thereby eliminating water loss and the need to consume water for industrial purposes. Beale’s air cooled design will otherwise consume no water, potable or otherwise, for industrial cooling. Water will be used only for domestic purposes, such as kitchens, bathrooms and fire suppression, which is required for employees’ health and safety, on a similar scale to any other business.
There will be no changes to the Energy Supply Agreement that Tucson Electric Power filed with the Arizona Corporation Commission on Aug. 25. That agreement will provide up to 286 megawatts, the same amount as under the project’s previous design, and ensures important protections for TEP customers:
- The project will not raise rates for other TEP customers;
- No new power plants will be required. Power will be drawn from existing resources and new clean energy systems in development;
- The project will pay for all new electric infrastructure dedicated to its service, and
- Termination fees, minimum payments and financial guarantees will ensure the project carries no financial risk to others.
Energy for future phases of the project would be provided through a second agreement with TEP that would be subject to separate review and approval by the ACC. As previously confirmed by Beale, it will work with TEP to support the development of new carbon-free energy resources to accelerate the region’s progress toward a clean energy future.
The project’s economic benefits are substantial. Independent economic analysis projects that the initial phase will generate:
- $3.6B total capital investment during the multi-year construction period;
- $152M in tax revenues over 10 years, including $58.5M to Pima County and $93.5M to the State of Arizona;
- 3,000 construction jobs extending for a multi-year period, with an emphasis on sourcing local skilled union and trade labor and partnering with local workforce development programs;
- 180 on-site data center campus jobs by 2029 with an average annual salary of $64K, and
- Increased tax revenue that directly benefits local schools and expands bonding capacity for all Pima County school districts.