Project Baccara: 700MW Gas-Powered AI Data Center Surprise AZ

Status: Approved / Pre-Construction   |   Location: Waddell

Project Overview

As of March 13, 2026, Project Baccara has become one of the most closely watched developments in Arizona’s rapidly expanding data center sector. The project, developed by Takanock LLC, received a Certificate of Environmental Compatibility in February 2026, clearing a major regulatory hurdle for its distinctive energy strategy. Unlike traditional hyperscale campuses that rely entirely on utility grid connections, Project Baccara will incorporate a 700-megawatt on-site natural gas power plant designed to operate in an “islanded” configuration. This means the data center campus can generate its own electricity independently, helping prevent strain on the surrounding residential grid while ensuring stable power for large-scale computing workloads. The gas turbines are also designed to function as emergency “peaker” plants, allowing them to supply electricity back to the regional grid during periods of high demand or power shortages.

The campus is planned on a 160-acre site just north of Luke Air Force Base and will feature two enormous one-million-square-foot data center buildings supported by 18 exhaust stacks rising approximately 72 feet into the air. Water usage has been a central concern for nearby communities, prompting the developer to explore agreements to use treated wastewater from a neighboring facility instead of relying solely on groundwater resources. Despite local opposition focused on potential noise and air-quality impacts, the project is moving forward and is projected to contribute roughly $41 million in tax revenue to Maricopa County schools over time.

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