Sahuarita developer eyes data center options

The developer of Rancho Sahuarita has
asked the Town of Sahuarita to confirm that a data center would be
permitted on a 200-acre property near the Sahuarita landfill transfer
station.

Rancho
Sahuarita Managing Partner Jeremy Sharpe told the Green Valley
News/Sahuarita Sun on Tuesday that there were no developers currently
looking at putting a data center on the property.

Sharpe
sent the letter to planning and building director Anna Casadei on July
15, requesting formal confirmation that data centers were a permitted
use in “Planning Areas 26 and 27” of the Rancho Sahuarita Specific Plan.
He said the plan didn’t initially consider data centers but that the
general provisions reference the park industrial zone that corresponds
to town code.

“Within
that code, a data center is contemplated explicitly with the following
language: ‘manufacture and service of data systems’ as a permitted use
under the Campus Park Industrial designation,” Sharpe wrote. “Data
centers are also allowed in comparable Pima County Zoning, reinforcing
their compatibility within this zoning type.”

Casadei
sent Rancho Sahuarita Vice President Michael Bowman a letter Aug. 12,
saying his request for an administrative amendment to the Rancho
Sahuarita Specific Plan for data center use was approved and subject to
conditions.

The
amendment requires a “will-serve statement” from the site’s electric
provider, confirming there is sufficient capacity and that it would not
“negatively impact other users or the existing grid.” The amendment also
has the same requirements for the site’s water utility.

Both statements would be required prior to the town issuing building permits for a data center.

The
amendment also allows the town to enter into an agreement “with the
developer or end user to define requirements for reclaimed water
infrastructure and use.”

The
move comes after Beale Infrastructure failed to get water access
through Tucson Water for Project Blue, a data center linked to Amazon
Web Services.

In
a 3-2 vote in June, the Pima County Board of Supervisors OK’d selling
290 acres north of the County Fairgrounds for $20.8 million to Beale,
but under immense public pressure the Tucson City Council rejected
moving forward with annexing the area in August. The council’s decision
nixed Beale’s attempt to gain access to Tucson Water.

Tuesday’s
Board of Supervisors meeting saw 30 speakers oppose Project Blue, with
several asking the county not to close on the June sale.

Despite the opposition, Beale hasn’t given up on Project Blue.

Arizona
Luminaria reported Beale confirmed Aug. 26 that it was committed to
building on the land it purchased from Pima County in June, but the
company didn’t respond to how it would access water for the data center.

County
Administrator Jan Lesher sent an Aug. 25 memo to county supervisors
saying she was informed that day about Tucson Electric Power filing an
Energy Service Agreement with the Arizona Corporation Commission for up
to 286 megawatts of power. Lesher wrote TEP made the agreement with
Beale for a data center project in Pima County, adding the county was
unaware of TEP and Beale’s ongoing efforts.

Lesher
attached the letter Beale sent her, which claimed its agreement with
TEP would have “multiple protections for existing customers.”

Beale
said the project would not have a special rate and would pay as much as
other large customers, with the 286 megawatts happening over time and
supplied by the existing grid. Beale also said initial service could
begin in May 2027, with power consumption ramping up across 18 months.

Beale said it would need to give several years’ notice and pay a termination fee after May 2027 for ending the agreement early.