The US Army is negotiation with Carlyle and CyrusOne on a $2 billion build out of data centers in military bases. Both companies have been selected to build two data centers on military bases for the US Army according to US Army Secretary Dan Driscoll. The army will provide long-term leases to the firms which will be responsible for building and also operating the centers. However, the army will not invest in the projects.

According to the scope of implementation, Carlyle is expected to build a 2.5-3 gigawatt data center at Fort Bliss in El Paso, Texas. On the other hand, CyrusOne is also expected to build a 1 gigawatt data center in Dugway Proving Ground in Utah. CyrusOne is a portfolio company as negotiations are being held with the main company KKR which jointly owns the portfolio with BlackRock. Data centers in Texas are steadily and gradually picking pace as other projects such as the Microsoft Crusoe data center campus also takes shape in the region.

Significance of US Army Data Centers in Military Bases

The construction of data centers in military bases will have significant implications for the US Army. The deal allows the army to use a certain percentage of data centers’ capacity exclusively. However, the army, CyrusOne and Carlyle do not yet have final agreements on the projects. Nonetheless, negotiations are exclusively ongoing as the various phases of implementation are considered.

The project highlights the strategic move aimed at enhancing the military’s data infrastructure. This initiative is part of a broader effort to modernize and secure the Army’s digital capabilities. Furthermore, it aims to ensure robust and efficient data management across its operations. The selected companies will play a crucial role in developing these facilities.

Once complete, they are expected to bolster the Army’s technological infrastructure and operational readiness. The move also comes as the Trump administration has taken steps to ease data center buildouts. Conversely, data center growth has become a politically contentious issue based on energy use and local impacts.

Project Overview

• Project Type: Hyperscale data centers in military bases.
• Estimated Cost: $2 billion.
• Purpose: Enhance military data infrastructure and also digital operations.

Key Stakeholders

• Client: United States Army
• Developers / Operators: The Carlyle Group and CyrusOne.
• Parent Investors (CyrusOne): KKR and also BlackRock.

Locations

• Site 1: Fort Bliss, Texas
• Site 2: Dugway Proving Ground, Utah
• Country: United States

Scope

• Building and maintenance of two large data centers.
• Fort Bliss 2.5-3 GW facility.
• Dugway Proving Ground 1 GW facility.

Funding / Delivery Model

• Lease contracts with private developers on a long-term basis.
• Construction will not be directly funded by U.S. Army.

Status

• Stage: Negotiation phase.
• Next Step: Final agreements and also phased implementation planning.

Strategic Significance

• Improves military cybersecurity and data management capability.
• Also Indicates increasing need to have secure and high capacity data infrastructure