Tucson officials move to ban portable water use for data center cooling amid growing drought concerns

Tucson City Council unanimously passed a new ordinance Tuesday requiring large water users, including data centers, to apply for city approval before accessing Tucson Water. Officials said the measure aims to protect the city’s water supply amid growing drought concerns by ensuring applicants submit and maintain water conservation plans.

Applicants must provide a water conservation plan demonstrating efforts to minimize water use, according to city officials. The Tucson City Council must approve the initial application, and all submitted materials are considered public records under the new rules.

The ordinance requires any large water user expecting to consume more than 7.4 million gallons of water per month to submit an application to Tucson Water for city approval before accessing the utility’s supply.

Mayor Regina Romero said the ordinance was designed to protect the city “as quickly as possible” from large water users such as data centers, which have drawn scrutiny following public backlash over the proposed Project Blue data center. The ordinance applies to both new customers and existing Tucson Water users planning to increase their water consumption. Tucson Water representatives explained the new rules create a formal framework to screen and regulate projects with large water demands before they connect to the system.

Applicants are required to submit updated water conservation plans every five years for review by the Tucson Water director, who has final discretion over whether users are employing water as efficiently as possible. This ongoing evaluation mechanism replaces a one-time approval process, allowing the city to monitor long-term water consumption by high-volume customers. The ordinance also limits water use to no more than 120% of the amount specified in the approved application. Officials said this cap is intended to keep actual usage close to projected demand.

Penalties are established for violations of the approved water limits. For a first violation lasting less than one year, the water user must pay twice the monthly charges for the excess water used. A second violation lasting between one and two years triggers a penalty of five times the monthly charges. Tucson Water may install water-restricting devices at the user’s expense or suspend water access altogether in cases of repeated violations. These enforcement measures give the city tools to escalate responses if large users exceed their approved limits.

The ordinance was adopted amid growing concerns about drought conditions in the region and the impact of large industrial water users on the city’s limited water supply. Public debate has focused on whether data centers should be allowed unrestricted access to potable water for cooling purposes. Tucson officials framed the ordinance as part of a broader effort to protect the city’s water resources in a desert environment.

In addition to the ordinance, the City of Tucson has initiated a public process to develop regulations for large-scale data centers. On Feb. 20, 2026, AZPM reported that the city hosted its first public meeting to gather input on possible amendments to the Unified Development Code. The Planning and Development Services department said the proposed regulations would establish standards governing the location and operation of large data centers. City officials have linked land-use regulation and water policy as part of a comprehensive response to data center development pressures.

The ordinance and ongoing regulatory efforts reflect Tucson’s approach to balancing economic development with water conservation priorities. The new rules provide a mechanism for the city to review, approve, and monitor large water users while maintaining public transparency and enforcement authority.