Army Partners With Carlyle and CyrusOne for AI Data Centers

The U.S. Department of the Army and the Department of the Air Force are collaborating with commercial developers to construct AI data centers on underutilized military land. Utilizing the Enhanced Use Lease program and following a Trump executive order, the Army conditionally selected Carlyle to develop a site at Fort Bliss, Texas, and CyrusOne for a site at Dugway Proving Ground, Utah. Both projects are estimated at $2 billion each.

Under the agreement, the military receives computing power in exchange for the land. To prevent straining local infrastructure, the projects must adhere to independent power requirements and net-zero water usage. Army Secretary Dan Driscoll described AI as a strategic asset and a force multiplier that ensures the Army remains ahead of adversaries.

The initiative has drawn scrutiny from Congress. Representative Cory Mills passed an amendment to prohibit the use of components from China, Russia, Iran, or North Korea in these facilities. Additionally, Representative John Garamendi called for stricter evaluations of environmental and security impacts to ensure that federal facilities are not degraded by the presence of the data centers.