The U.S. Army has tapped Carlyle and CyrusOne as preferred partners to negotiate the construction and operation of commercial hyperscale data centers across its military bases.
The Potomac Officers Club’s 2026 Army Summit on June 18 explores the Army’s modernization efforts, including the emerging role of artificial intelligence. Sign up now to join the discussion.
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Where Will the Projects Be Located?
Carlyle was chosen to develop approximately 1,384 acres at Fort Bliss, Texas, while CyrusOne, a portfolio company held by KKR and BlackRock, will manage a project on 1,201 acres at Dugway Proving Ground, Utah. These companies will finance, build and maintain the facilities on non-excess land under the Army's Enhanced Use Lease program. This model ensures the digital infrastructure is developed at no upfront cost to taxpayers, following a competitive selection process.
How Does the Effort Support Army Priorities?
The initiative aligns with the 2025 executive order on Accelerating Federal Permitting of Data Center Infrastructure, which advances the goals of the government's AI Action Plan. The order is intended to streamline federal permitting for data center projects and is authorized under Title 10 of the U.S. Code, which governs the leasing of non-excess military property.
“AI is a strategic asset for the Army. It is a force multiplier, supports future transformation and requirements, keeps the Army ahead of our adversaries, and generates resiliency across the force,” said Secretary of the Army Dan Driscoll.
“These data centers are a critical resource to support that strategic imperative,” added the 2026 Wash100 Award winner.
