The U.S. Army has selected Carlyle and CyrusOne to develop large-scale commercial data centers at Fort Bliss and Dugway Proving Ground through a public-private partnership model.

Key Points

• Carlyle will develop a data center on 1,384 acres at Fort Bliss, Texas, with operations expected by fiscal year 2027.
• CyrusOne, backed by KKR and BlackRock, will build on 1,201 acres at Dugway Proving Ground, Utah, targeting a 2029 launch.
• The projects utilize the Army’s Enhanced Use Lease program, requiring no upfront taxpayer funding for construction or maintenance.
• The U.S. Army Corps of Engineers will manage lease negotiations and provide technical oversight, including environmental reviews.
• These facilities aim to bolster national security by providing the computational infrastructure necessary to support advanced artificial intelligence capabilities.

Why it Matters

These partnerships establish a new model for military infrastructure development that leverages private capital to accelerate the deployment of critical technology. By integrating commercial data centers onto military installations, the Army aims to secure a competitive advantage in AI while fostering economic growth and modernization.