Six major businesses committed to the Tucson region in 2025, thanks in part to collaboration among Tucson Electric Power and local leaders. Together, these efforts will help fuel economic development, growth and new jobs.
The businesses will bring 285 new jobs to Southern Arizona communities served by TEP through relocations or major expansions. Since 2016, TEP has contributed to local economic development efforts that have created 22,685 local jobs.
TEP’s Business Development team works closely with representatives from the City of Tucson, Pima County, The Chamber of Southern Arizona, and local chambers of commerce, along with other state and regional partners, to attract new and expanding businesses.
“Our partnerships drive the success of economic development in our community. We work hard to build trust with new businesses to ensure we can do the right thing in providing them with the service they need to thrive,” said David Couture, TEP Manager of Customer Advocacy, who oversees our economic development efforts.
The Chamber of Southern Arizona reported that key growth industries are aerospace and defense, mining and mining technology, and bioscience and health care. Others include optics and photonics, transportation and logistics, given Tucson’s location near the U.S.-Mexico border and the Interstate 10 and I-19 interchange.
Building Relationships
Mike Czechowski, City of Tucson’s Senior Project Manager of Economic Initiatives, said TEP is a key partner in regional initiatives to recruit new and growing businesses. Czechowski meets regularly with TEP representatives and touches base frequently regarding potential prospects.
In recent years, the City of Tucson and TEP have worked together on a strategy to reduce the time needed to bring in new businesses by preparing sites to be ready for certain projects.
“Having available electric capacity is absolutely critical. Having the right people at the table to explain the availability of capacity is also critical. That’s why it’s great to have TEP on these conversations and part of our local economic development team,” Czechowski said.
Heath Vescovi-Chiordi, Director of the Pima County Economic Development Department, called TEP’s partnership “invaluable.”
“In order to further attract and expand business into Pima County, we need robust and reliable service, which TEP provides,” Vescovi-Chiordi said. “The Economic Development team at TEP is a trusted and responsive partner, and we are happy to be moving Pima County’s economy forward with them.”
Job Growth
New businesses committed in 2025 were:
- Edmund Optics, a leading global supplier of optics, imaging, and photonics technology – 20 jobs
- Kilgore Manufacturing Company, a precision machining and assembly facility – 30 jobs
- Delta Zee Solutions, an engineering and manufacturing company for the defense industry – 100 jobs
- Freeport McMoRan, expansion with a research and development facility – 10 jobs
- Shamrock Food Company, new warehouse and distribution facility – 125 jobs
While most businesses made investments in existing spaces, I-10 International Logistics Campus developed a new facility last year. The 374,000-square foot project sits on a 79-acre site for new businesses to set up shop east of Tucson International Airport.
Strong Partnerships
The energy supply agreement between TEP and Beale Infrastructure to serve a data center southeast of Tucson was consistent with our approach to responsible economic development. Under the agreement, which was approved by the Arizona Corporation Commission (ACC), the project will pay the full rate for TEP’s largest customers with no financial incentives or discounts. This and other protections built into the agreement will strengthen our region’s long-term economic competitiveness while ensuring that residential customers and other retail customers do not subsidize the project. Read Five Things to Know about Data Centers.
Last year, TEP fielded more than 50 inquiries from the Arizona Commerce Authority related to manufacturing, clean energy technology, aerospace and defense, consumer products, and other industries, said Ryan Anderson, TEP’s Manager of Business Development.
“Any day spent working alongside our regional partners to advance community prosperity is a good day,” Anderson said.
Local economic development efforts were strengthened last year by the merger of the Tucson Metro Chamber and Sun Corridor into The Chamber of Southern Arizona. TEP retains strong leadership in the organization, with TEP’s Chief Executive Officer Susan Gray serving as the first board chair. One highlight of the Chamber’s first year was leading a 25-member delegation to Washington, DC to meet with Arizona’s congressional members, the Embassy of Mexico and the Council on Foreign Relations to advance priorities in Southern Arizona.
“The Chamber works with site selectors and companies, both across the world and right here in our region, looking for where to strategically grow their businesses. Power capacity, costs and reliability are top site selection criteria. TEP’s capabilities are recognized as best in class among our clients,” said Susan Dumon, The Chamber’s Chief Economic Development Officer.
