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Tombstone Resources files application to build massive AI data center in Cochise County

Monday, November 9, 2026 · Reported by KGUN 9 Local News

A proposed artificial intelligence data center in rural Cochise County could become one of the largest electricity consuming developments ever considered in southern Arizona, with potential consequences for the region’s power system, water resources, wildlife and surrounding communities. Tombstone Resources LLC has submitted a special use application for a 747 acre campus near Cochise, east of U.S. Highway 191 and close to the Apache Generating Station. The public can submit comments or speak at the Cochise County Planning and Zoning Commission’s formal hearing on Dec. 9.

The application describes a project that would be built in four phases and eventually include as many as nine computing buildings. At full construction, the campus could require up to 6,000 megawatts of electricity, equal to 6 gigawatts. That scale would place the proposal among the largest data center projects in the country based on anticipated power demand. The development would also include a battery energy storage system, although the application does not mean the project has been approved. County officials have not issued a decision.

The project is attracting attention beyond the immediate area because large data centers can affect regional infrastructure and utility planning. For Tucson residents and others across southern Arizona, the proposal is another example of the region’s growing role in technology and energy development, while also raising questions about how much electricity and water future industrial projects will need. The site is in unincorporated Cochise County, rather than Tucson, but its size and proposed power requirements could make the county review a matter of broader regional interest.

Residents recently gathered at Cochise Elementary for a community meeting hosted by SpaceX, where they heard information about the proposal and questioned its potential effects. The meeting drew sharply different reactions. Herald Satterlee said artificial intelligence facilities are part of the future and expressed support for the project. Michael Gregory took the opposite view, saying residents do not yet have enough information and should reject the proposal.

Water use was one of the issues raised at the meeting, along with possible effects on wildlife and concerns about noise. The application says the facility would use a dry cooling system intended to reduce water consumption. It also outlines additional measures meant to address environmental impacts. The available information does not resolve the questions raised by residents, leaving those issues for further review as the county considers the special use request.

The applicant says the project could produce thousands of construction jobs. It also says the development could potentially reduce electricity bills for customers. Those claims are part of the argument for the campus, but the proposal’s potential demand would place substantial importance on how the electricity is generated, delivered and paid for. The application identifies the maximum possible power requirement, while construction would occur over four phases rather than all at once.

Jason Bowling, chief executive officer of Sulphur Springs Valley Electric Cooperative, acknowledged that the community has legitimate reasons both to welcome and question the development. He said some people are excited, while others are concerned, and that both reactions are valid. Bowling said the facts need to become available so residents can evaluate the proposal for themselves. His comments reflect the central issue facing the county as it begins its formal review: whether the economic opportunities justify the project’s infrastructure and environmental demands.

SpaceX’s involvement has added another layer of interest, although the exact connection between SpaceX and Tombstone Resources remains unclear. The community meeting was organized by SpaceX, but the special use application names Tombstone Resources LLC as the applicant. SpaceX representatives were asked for an interview during the meeting, but no representative was available to comment. The proposal comes as SpaceX and its founder and chief executive, Elon Musk, have been publicly discussing data center development. Earlier in the week, Musk said cooling data centers would be easier in space than on Earth, and a sister station reported that he had announced two data centers in Mississippi.

The county’s Dec. 9 Planning and Zoning Commission meeting will give residents their next formal opportunity to weigh in. Written comments and requests to speak can be submitted through the Cochise County website, with Dec. 9 serving as the public comment deadline. No final decision has been made. Until the county reviews the application and hears from the public, the proposed campus remains a request for permission, not a construction project. For residents watching the future of energy, technology and rural development in southern Arizona, the hearing will be an important early test of how the county handles a project of unprecedented scale.

This story was written by Tucsonans based on reporting from KGUN 9 Local News. Read the original report