TSMC operates a major semiconductor foundry in Phoenix, which consumes nearly 5 million gallons of water daily. The company has invested in the state since 2020, with projected expenditures now reaching $265 billion. This project has created over 3,500 jobs and is considered the largest foreign direct investment in US history.
While the TSMC facility faced little opposition, new hyperscale data center projects in Arizona are encountering significant public backlash. Residents are concerned about the high consumption of water, power, and land. Arizona faces a future reduction of nearly 30 percent in its water supply from the Colorado River.
Local activists have formed coalitions, such as the No Desert Data Center Coalition, to protest developments like the 600-megawatt Project Blue facility in Tucson. Protesters cite concerns over potential heat islands and the depletion of local water resources, contrasting these new projects with the earlier welcome given to TSMC.
