SpaceX proposes massive data center in Southern Arizona

A proposed SpaceX data center near the Willcox Playa could reshape the electricity system, economy and rural landscape about 80 miles east of Tucson. The planned campus would cover roughly 747 acres along U.S. Highway 191 near the Apache Generating Station, with nine buildings dedicated to artificial intelligence operations. If fully constructed, the facility would require as much as 6 gigawatts, or 6,000 megawatts, of electricity, making it the largest data center proposal in Arizona and one of the biggest in the country.

Nearly 300 people attended a Nov. 4 community meeting at Cochise Elementary School, where SpaceX presented the project and residents questioned its potential effects. The gathering quickly became contentious. Some people held signs opposing the development, while others applauded the company’s plans and argued that advanced computing facilities could bring needed jobs and investment to the region. Residents asked about water, wildlife, noise, lighting and the amount of information available to the public.

The formal application was submitted to Cochise County on Oct. 30 by Tombstone Resources LLC, not SpaceX. The company later identified SpaceX as the host of the community meeting, but the precise relationship between Tombstone Resources and SpaceX has not been explained publicly. People living within a mile of the proposed site received letters from Tombstone Resources in mid October, according to the company, while other residents said they learned about the project only in the days before the meeting. The county’s Planning and Zoning Commission is scheduled to hold a public hearing on Dec. 9, and no approval decision has been made.

Water is one of the central concerns for communities around the Willcox Playa, where groundwater has already been stressed by large dairy operations. The application says the campus would use dry cooling and would not pump groundwater for industrial cooling. An existing well would supply as much as 10 acre feet annually for drinking water, maintenance and equipment cleaning. The company also described water recycling and other measures intended to limit its environmental footprint. Those assurances did not settle the issue for many residents, who said the project’s scale requires stronger, enforceable restrictions.

Some opponents worry that the development could affect the area’s rural character, dark skies and wildlife, including sandhill cranes. They also questioned whether future owners or operators would be held to the same promises made during the approval process. James A. Schmidt, a retired U.S. Department of Agriculture wildlife specialist from Dragoon, said any permit should set permanent conditions for water use, noise and lighting, and require renewed approval if the facility’s operations change. Other residents cited concerns about corporate ownership and whether local people would have meaningful control over a project backed by one of the world’s wealthiest companies.

Supporters focused on the economic benefits. The application estimates about 1,000 permanent jobs, while the company also promoted thousands of construction positions. SpaceX representatives said the project could reduce local electricity bills and property taxes, with property taxes potentially falling by 20 percent. The application estimates a one time $250 million sales tax benefit for Cochise County, followed by annual sales tax revenue ranging from $35 million to $103 million. Residents who support the plan said it could provide work in an area where construction employment slows during the winter and could bring new opportunities without using large quantities of groundwater.

The electricity demand would be unprecedented for Arizona. The campus would receive power through Sulphur Springs Valley Electric Cooperative and Arizona Electric Power Cooperative, with the application calling for $3.6 billion in grid improvements. Its projected demand is about two and a half times the combined demand of all data centers in Maricopa County, according to an Arizona Republic analysis. The Apache Generating Station now has capacity of about 1 gigawatt and uses coal and natural gas. It had been expected to retire by 2028, but received nearly $21 million in federal funding this summer for upgrades that would keep it operating. Changes to federal air quality rules for coal plants have also affected the station’s outlook.

The proposal is part of a broader push by Musk and other technology companies to expand computing capacity for artificial intelligence. Musk recently said cooling data centers could eventually be easier in space than on Earth, and his company has also announced data center plans in Mississippi. The Southern Arizona project, however, is still at the local permitting stage. SpaceX representatives stayed after the meeting to speak with residents individually but declined media interviews, directing questions to the company’s public affairs email.

Organized opposition emerged quickly. Rural Arizona Engagement helped residents circulate materials opposing the project, and a petition seeking denial of the permit had collected 2,400 signatures. Some attendees traveled from Tucson, Sierra Vista and other parts of Cochise County. Others urged residents to weigh the potential benefits against the risks rather than reject the proposal outright. Sulphur Springs Valley Electric Cooperative CEO Jason Bowling said both the enthusiasm and concerns deserve consideration while the facts are examined. The next major opportunity for public input will be the Dec. 9 Planning and Zoning Commission hearing, where residents can press for more details before Cochise County decides whether the massive campus can proceed.