US Army Selects Carlyle and CyrusOne to Build Data Centers on Army-owned Land

The US Army has chosen two companies to develop data centers at military bases across the country. Global investment firm Carlyle and data center operator CyrusOne will build facilities on Army-owned land in Texas and Utah.

According to the US Army, the companies were conditionally selected through a “rigorous and competitive process” and will handle the financing, construction, operation, maintenance, and eventual decommissioning of the data centers. The projects will involve no upfront cost to taxpayers.

“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 fall under the White House’s 2025 executive order on accelerating federal permitting for data center infrastructure, which allows military departments to lease certain non-excess land. The Army said the agreements are still in an exclusive negotiation phase to finalize lease terms and other details.

Current timelines indicate the Carlyle site could be operational by 2027, while the CyrusOne facility may come online 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.

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

The Dugway Proving Ground would mark its first site in Utah. Located southwest of Salt Lake City, the base covers around 6,796 sq km (2,634 square miles).

The 2025 executive order on accelerating federal permitting for data center infrastructure requires projects to involve at least $500 million in capital expenditure and deliver more than 100MW of capacity. The US Air Force has also proposed sites under the initiative.