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Project Blue data center faces new scrutiny from Arizona attorney general, Tucson

Residents speak during a Project Blue community meeting in Tucson on Aug. 4.
Alisa Reznick/KJZZ
Residents speak during a Project Blue community meeting in Tucson on Aug. 4.

Arizona Attorney General Kris Mayes is asking the Arizona Corporation Commission to reconsider its decision to grant an energy agreement for Project Blue — the controversial data center planned near Tucson.

Mayes’ filing to the Corporation Commission requests a new hearing for the Project Blue agreement with Tucson Electric Power.

The deal allowed TEP to come to a private rate agreement with the data center backed by the developer Beale Infrastructure.

Mayes claims that deal is unconstitutional because only the commission has the authority to set rates of private power companies.

Tucson also filed for a rehearing recently, claiming the city was denied the chance to participate in the ratemaking process.

Project Blue is set to span 290 acres north of the Pima County fairgrounds and use up to 15% of TEP’s current electricity generation capacity.

Greg Hahne started as a news intern at KJZZ in 2020 and returned as a field correspondent in 2021. He learned his love for radio by joining Arizona State University's Blaze Radio, where he worked on the production team.
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