The Army has selected Fort Bliss, Texas, and the Dugway Proving Ground in Utah, to support its growing need for artificial intelligence on the battlefield by hosting the service’s first civilian-built and -operated hyperscaled data centers.
One of the new data centers will be constructed by the Carlyle global investment firm on 1,300 acres at Fort Bliss, near El Paso. Meanwhile, a 1,200-acre parcel of land at Dugway will be set aside for its future data center.
The latter will be operated by CyrusOne, a portfolio company jointly held by funds managed by investment firms KKR and BlackRock.
“The companies were chosen through a rigorous and competitive process and will be responsible for financing, building, operating, maintaining, and decommissioning the data center on underutilized but non-excess Army land at no upfront cost to taxpayers,” Army officials said in a statement.
The Army said artificial intelligence is a strategic asset for the service as a force multiplier that supports future transformation efforts and helps keep the service ahead of potential adversaries.
“By partnering with the private sector to develop cutting-edge data centers on our installation, we are bolstering our national security, driving technological innovation, and building a more resilient and modern army,” said David R. Fitzgerald, deputy undersecretary of the Army.
The projects are entirely financed by private capital through the Enhanced Use Lease program, under which the Army provides the land while the companies bear the construction and operational costs.
“These data centers are a critical resource to support the strategic imperative,” Army Secretary Dan Driscoll said.
In exchange for each lease, the Army will receive a dedicated portion of the data center’s computing power for its AI-driven weapons systems and decision-making platforms.
The data center at Fort Bliss is expected to be operating, at least minimally, by fiscal 2027, with the Dugway facility to start two years later. The data center at Dugway Proving Ground will be constructed with funds from the global investment firm KKR.
Waldemar Szlezak, the company’s head of digital infrastructure, said U.S. leadership in the global AI race will be decided in large part by who can build the infrastructure fast.
“We commend Secretary Driscoll and the Army for recognizing that and developing an innovative public-private model to accelerate it,” Mr. Szelzak said.
As part of the deal, the developers must build independent power and water infrastructure. Excess energy generated by the facilities can potentially be sold back to local civilian grids, officials said.
The Army Corps of Engineers will play a key role in the development of the projects. It will conduct lease negotiations and provide critical technical expertise, including environmental reviews, officials said.
“By delivering these critical facilities on an accelerated timeline, we are not just building infrastructure, we are engineering a strategic competitive advantage for the Army and the nation,” said Lt. Gen. Butch Graham, commander of the Army Corps of Engineers.
Army officials said the deal is not yet fully finalized, and the Army and private industry will now enter an exclusive negotiation period to iron out the last details.
“The initiative will enhance computational capabilities for the warfighter, create a projected ’significant’ number of American jobs, and advance the Army’s role as a key economic power,” Army officials said.
• Mike Glenn can be reached at mglenn@washingtontimes.com.
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