U.S. Army Selects Carlyle to Build AI Data Center at Fort Bliss

The United States Army has conditionally selected the global investment firm Carlyle to build and operate a commercial artificial intelligence data center on 1,384 acres of underutilized land at Fort Bliss. Using the Enhanced Use Lease program, the project will be entirely financed, constructed, and decommissioned through private capital, ensuring no cost to taxpayers. The Army aims to advance AI capabilities to outpace adversaries while using the generated revenue to fund quality-of-life improvements for soldiers and their families.

The development is expected to bring billions in private investment and approximately 2,000 jobs to the El Paso region. However, the project has faced immediate pushback from local leadership over its environmental and procedural origins. Representative Veronica Escobar and Mayor Renard Johnson raised concerns regarding the facility's potential impact on water, energy, and the local environment.

Representative Escobar criticized the lack of transparency, stating that the project began as a directive from the Trump Administration without any community or congressional consultation. Mayor Johnson emphasized the need to protect natural resources, specifically water, to ensure the project is executed responsibly. The United States Army Corps of Engineers and the Department of the Army are currently leading final negotiations for the lease terms.