TSMC’s Arizona plant consumes nearly 5 million gallons of water daily

Local residents and a bipartisan coalition have opposed new hyperscale data centers, citing water scarcity and heat‑island effects. The proposed Project Blue in Tucson would add 3,000 construction jobs and 200 permanent positions, generate $152 million in tax revenue, and require new water lines. The state could lose nearly 30 percent of its Colorado River water to these projects.

The debate highlights the tension between Arizona’s growing tech industry and its limited water resources, with community groups warning that further development could exacerbate drought and temperature rises.