The US Army has conditionally selected Carlyle Group and CyrusOne to develop large-scale data centers at installations in Texas and Utah, advancing efforts to expand computing capacity for artificial intelligence (AI).
For the effort, Washington-based Carlyle will manage work on 1,384 acres (560 hectares) at Fort Bliss, while CyrusOne, headquartered in Dallas, will develop 1,201 acres (486 hectares) at Dugway Proving Ground.
Both companies will fund, build, and operate the facilities under long-term leases on the sites with no upfront taxpayer cost.
The military expects initial operating capability at Fort Bliss in 2027 and at Dugway by 2029.
Associated lease negotiations and technical oversight will be coordinated with the US Army Corps of Engineers.
‘Force Multiplier’
The initiative aligns with a 2025 White House order aimed at establishing a data center infrastructure network across non-excess federal land in support of AI solutions, data computing, and chip manufacturing.
“AI is a strategic asset for the Army,” US Army Secretary Dan Driscoll commented.
“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.”
The service noted that the model shifts investment risk to the private sector while expanding warfighter access to high-performance computational capability.
“By partnering with the private sector … we are bolstering our national security, driving technological innovation, and building a more resilient and modern Army,” said David Fitzgerald, deputy undersecretary of the US Army.
