The $5 Billion Mystery: Marana’s Data Center Referendum and the Unknown Tenant
The Town Council approved 600 acres. Residents delivered 2,800 signatures. Beale Infrastructure is the developer. But the name on the lease? Nobody is saying.
By Arizona Tech Watch | Published February 12, 2026 | Updated 15 minutes ago
MARANA, AZ — On a Tuesday night in early January, the Marana Town Council chambers looked nothing like a normal government meeting. Opponents held signs asking how councilmembers would pay their own electric bills if a data center spiked rates. Supporters in bright orange safety vests spoke about trade jobs and staying in town long enough to have dinner with their kids. By 10:30 p.m., the vote was 6–0. The rezoning passed. [1]
But here is the thing about Marana: it is a town of 60,000 people, and a lot of them felt steamrolled. Within four weeks, the No Desert Data Center Coalition collected more than 2,800 signatures — double the required amount — to force a referendum. If the town clerk validates them (and all signs say she will), this project goes to the ballot. [2]
“We’re a town of over 60,000 people. For 0.01% of the town to make a decision of that magnitude… it just didn’t feel right.” — Jackie McGuire, Marana resident and petition organizer
1. The Ghost in the Machine: Who Is the End User?
Let’s start with the most glaring detail. The developer, Beale Infrastructure, is well known in Southern Arizona. They are also behind Project Blue, the controversial data center proposal in Pima County that the Tucson City Council rejected in 2025. But here is where it gets strange: the Marana town website explicitly states that the identity of the end user is unknown. Beale’s representatives have declined to name the tenant. [3]
In 2023, Pima County documents identified Amazon Web Services as the prospective operator for Project Blue. But AWS has not confirmed anything publicly since then, and Beale has stopped confirming or denying. For Marana, this silence is fuel on fire. [4]
“Beale currently has no customers for this data center and multiple financial agencies believe this is a bubble,” Sue Ritz, a National Guard veteran and Marana resident, told the Planning Commission in December. “I’m not against progress. I want written guarantees.” [5]
2. A $5 Billion Bet on 600 Acres of Farmland
The numbers are almost too round. $5 billion in capital investment. $145 million in tax revenue to Marana over 10 years. 4,200 construction jobs. 400 permanent positions. That is the promise Beale Infrastructure laid out in its presentations. The two parcels — one owned by the Kai Family Trust (linked to Councilmember Herb Kai, who recused himself), the other by the Church of Jesus Christ of Latter-day Saints — are currently farmland. They consume about 2,000 acre-feet of water per year growing crops. Beale says the new facility will use only 40 acre-feet. [6]
But opponents are not buying the math. “Air-cooled does not mean water-free,” Ritz argued. Because the data center will draw massive amounts of electricity (between 550 and 750 megawatts at full build-out), and because Arizona generates much of its power from thermal plants that consume water, the “upstream” water use could be huge — possibly 11,100 acre-feet per year. That is equivalent to thousands of households. [7]
- Acres: 600 (two 300-acre parcels)
- Investment: $5 billion
- Power required: 550–750 MW (enough for ~500,000 homes)
- Construction jobs: 4,200
- Permanent jobs: 400
- Tax revenue (Marana): $145 million / 10 years
- Referendum signatures: 2,800+ submitted Feb. 4, 2026
- End user: Undisclosed
3. 2,800 Signatures in Four Days: “An Inflection Point”
When the No Desert Data Center Coalition started gathering signatures, even they were surprised by the speed. “We got over 2,800 signatures in four days,” said Vivek Bharathan. “It goes to show just how opposed voters in Marana were.” The requirement was 1,360. They more than doubled it. [8]
Town Manager Terry Rozema admitted he was not shocked. “Was I excited about it? Not necessarily. But it’s part of the process, and we anticipated it.” [9] The Town Clerk now has 20 business days to verify signatures. If validated, the measure heads to the Pima County Recorder’s Office, then likely to the ballot — possibly as early as the primary election later this year.
Jackie McGuire, who helped lead the petition, told reporters: “This feels like an inflection point for Marana. I’m proud of it, whichever way the vote goes. I hope our elected representatives realize that more people involved in local government is a really good thing.” [10]
4. “Get the Hell Out”: Inside the Jan. 6 Meeting
If you watch the recording of the January 6 council meeting, it is not a dry land-use hearing. It is tense. Councilmember Patrick Cavanaugh, who ultimately voted yes, voiced serious concerns about noise and air quality. “I think the noise is going to be a lot greater than you think, and the soot and smoke coming out of those generators is not going to be pretty,” he said. He voted yes anyway, saying, “I need a lot of trust. I need to trust the power companies. I need to trust Beale.” [11]
Vice Mayor Roxanne Ziegler had a sharper exchange. When a University of Arizona student mentioned campaign contributions from people tied to Beale, Ziegler demanded a right to reply, told the student to read campaign finance laws, and later told another speaker he could “get the hell out.” Mayor Jon Post also clashed with opponents, expressing disappointment that the late Mayor Ed Honea’s name was brought into the discussion. [12]
Herb Kai, whose family trust owns one of the parcels, recused himself and did not attend. The other landowner? The Church of Jesus Christ of Latter-day Saints. [13]
5. This Isn’t Just Marana: Arizona’s Data Center Reckoning
What is happening in Marana is a microcosm of a statewide eruption. In January, Governor Katie Hobbs used her State of the State address to announce she no longer supports tax breaks for data centers. “It’s time we make the booming data center industry work for the people of our state rather than the other way around,” she said. She proposed making data centers pay the same per-gallon rate for water as residential customers — which could generate millions for the Colorado River Protection Fund. [14]
Meanwhile, Arizona Public Service (APS) has said it has 30,000 megawatts of data center requests in its queue — nearly four times its current capacity. “We’ve never sat in a position before where somebody’s asking you to triple the size of your company,” APS’s executive vice president told KTAR. [15]
And then there is Kyrsten Sinema. The former senator now runs the AI Infrastructure Coalition, lobbying for projects like this. She warned Chandler officials last year: if local governments don’t approve AI data centers proactively, federal preemption will take the decision out of their hands. “When federal preemption comes, we’ll no longer have that privilege. It will just happen.” [16]
“Make data centers pay their fair share for the water they use. The average Arizona family pays one cent for every gallon. If data centers paid the same, we could make a multi-million-dollar deposit into the Colorado River Protection Fund every single year.” — Gov. Katie Hobbs, State of the State, Jan. 12, 2026
6. The Ballot, The Backlash, and The Black Box
Here is where things stand on February 12, 2026.
- Petition status: Submitted Feb. 4. Town Clerk verification in progress (20-day window).
- Likelihood of referendum: Almost certain. Signatures far exceeded requirement.
- Project status: Rezoning approved, but on hold pending referendum outcome.
- Beale’s statement: “We appreciate the council’s vote of confidence. The next phase will go into design and permitting.” No word on groundbreaking. [17]
- End user: Still unknown.
Beale Infrastructure, backed by Blue Owl Capital (a $295 billion investment firm), is playing the long game. They have already shifted Project Blue from water-cooling to air-cooling after public outcry. They are promising road upgrades, water line extensions, and $20 million for a new road. But the question hanging over every public meeting, every petition signature, and every council vote is simple: Who are we really building this for? [18]
Until that question gets an answer, Marana — a town of veterans, farmers, and retirees — is not backing down. And in a few months, its 60,000 residents may get the final say.
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