The U.S. Army selected two commercial companies to build AI data centers on federal land, including at Fort Bliss, Texas. (Rose L. Thayer/Stars and Stripes)
The U.S. Army selected two commercial companies to build AI data centers on Fort Bliss, Texas, and Dugway Proving Ground, Utah, the service announced Thursday.
The Army will enter exclusive negotiations with Carlyle, an investment firm, and CyrusOne, a data center developer, to build “hyperscale data centers” on the Army posts as the service seeks to expand its use of AI in combat and other military applications. The agreements would allow the companies to build, operate and maintain the data centers on land leased from the Army, according to a service news release.
“AI is a strategic asset for the Army,” Army Secretary Dan Driscoll said in a statement. “It is a force multiplier, supports future transformation and requirements, keeps the Army ahead of our adversaries, and generates resiliency across the force. These data centers are a critical resource to support that strategic imperative.”
Carlyle and CyrusOne would be responsible for financing the projects, and taxpayers would not see an upfront cost to their development, Army officials said. The Army Corps of Engineers will conduct final lease negotiations and oversee the projects, including conducting environmental reviews, according to the Army.
The agreements come after a 2025 executive order from President Donald Trump that sought to make available underutilized federal land for commercial data center projects.
Carlyle was selected to build on about 1,384 acres at Fort Bliss, according to the Army. That project is expected to be functional in 2027.
CyrusOne, a company held by investment giants KKR and BlackRock, was selected to build on about approximately 1,201 acres on Dugway Proving Ground. That project is expected to be completed around 2029.
Each project is estimated to cost about $2 billion, according to the Financial Times.
The Army in January solicited bids for leases to build commercial data centers on Fort Bliss, Dugway Proving Ground, Fort Hood in Texas and Fort Bragg in North Carolina.
Army officials have said working hand-in-hand with the private sector is necessary to leverage ever-advancing technology into soldiers’ hands. The service is also seeking private companies to build nuclear microreactors on some of its installations, which officials have said would bolster power needs for the service, including expanded AI capabilities.
“By partnering with the private sector to develop cutting-edge data centers on our installations, we are bolstering our national security, driving technological innovation, and building a more resilient and modern Army,” David R. Fitzgerald, the deputy undersecretary of the Army, said in a statement. “Our new data center initiatives made possible by enhanced use leasing, are a direct investment in Army priorities.”
