The US Army has selected two companies to develop data centers at army bases in the US.

Global investment firm Carlyle and data center operator CyrusOne will develop data centers at army-owned sites in Texas and Utah.

Carlyle will develop a data center project on around 1,384 acres at Fort Bliss in Texas, while KKR and BlackRock-owned CyrusOne will develop 1,201 acres at the Dugway Proving Ground in Utah.

According to the US Army, the companies were conditionally chosen through a "rigorous and competitive process" and will be responsible for the financing, building, operating, maintaining, and decommissioning of the data centers. There will be no upfront cost to taxpayers related to the projects.

“AI is a strategic asset for the army,” said Secretary of the Army Dan Driscoll. “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.”

"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," added David R. Fitzgerald, Deputy Undersecretary of the Army. “Our new data center initiatives made possible by enhanced use leasing, are a direct investment in army priorities.”

The projects are part of the White House’s 2025 executive order on Accelerating Federal Permitting of Data Center Infrastructure, which enables military departments to lease out their non-excess property. According to the US Army, the deal is not yet final, and is in an exclusive negotiation period to finalize the leases and other terms.

The current timelines for the site suggest that the Carlyle site could be operational in 2027, and the CyrusOne site in 2029.

“We are pleased to have been selected to enter exclusive negotiations with the US Army on this initiative to advance next-generation digital infrastructure. With deep roots in Washington, DC, Carlyle brings experience at the intersection of government and industry, along with a strong track record investing in and building large-scale energy and digital infrastructure, said Ferris Hussein, partner, global infrastructure at Carlyle.

Fort Bliss is located in El Paso, Texas. The army base spans some 4,400 sq km (1,699 square miles).

Carlyle is an investment company, and counts Edge data center firm Armada and Nxtra by Airtel among its portfolio companies.

Eric Schwartz, CEO of CyrusOne, said: “We are honored to be selected by the US Army to enter exclusive negotiations for the Dugway project. This represents a unique opportunity to support the army’s modernization objectives through a long-term, commercially driven development. We look forward to working collaboratively with the army as this initiative progresses.”

CyrusOne operates numerous data centers across the US, including in Arizona, Illinois, Iowa, New York, North Carolina, Ohio, Texas, Virginia, and Washington.

The Dugway Proving Ground would be the company's first in Utah. The base is located southwest of Salt Lake City, and spans some 6,796 sq km (2,634 square miles).

The Accelerating Federal Permitting of Data Center Infrastructure executive order was issued in 2025 and requires data center projects to have at least $500 million in capital expenditure and offer more than 100MW in capacity. The US Air Force has also put forward locations for proposals.

In October 2025, the Department of Energy (DOE) issued a Request for Proposal (RFP) calling for companies to build and manage a data center at the Savannah River Site, a former nuclear materials facility in South Carolina. Two days before that, the DOE issued another RFP for a data center to be built in the 33,508-acre Oak Ridge Reservation.