US Army Partners With Carlyle, KKR for $4B Military Data Centers by 2029
The US Army has chosen two major investment firms to construct high-capacity data centres on military bases. Carlyle and KKR will each build a facility, with combined costs estimated at $4 billion. The move aims to boost the Army's computing power in key regions by the end of Donald Trump's presidency.
The projects will provide dedicated capacity for military use while also serving commercial clients. Army officials have stressed the growing importance of data infrastructure in modern warfare. Carlyle will develop a 2.5 to 3 gigawatt data centre at Fort Bliss, Texas, covering around 1,384 acres. The facility is set to become fully operational by 2028. Meanwhile, KKR, through its subsidiary CyrusOne, will construct a 1 gigawatt centre at Dugway Proving Ground in Utah, spanning 1,201 acres, with completion expected in 2029.
The Army will not fund the projects but will secure a share of each centre's capacity under long-term leases. The remaining space will be available for private-sector customers. Secretary of the Army Dan Driscoll highlighted recent conflicts in Iran as proof of the military's rising demand for AI-driven data processing.
Negotiations remain exclusive to Carlyle and KKR, though the Army plans to pursue similar partnerships in the future. The initiative aligns with the Trump administration's push to involve private capital in defence infrastructure. Security measures will include military-controlled perimeters and classification controls, though specific technical details remain undisclosed. The two data centres will give the Army dedicated computing resources in the US while allowing commercial use of excess capacity. Fort Bliss and Dugway Proving Ground will host the facilities, with operations beginning in 2028 and 2029 respectively. The projects mark a step toward expanding military data capabilities in contested regions worldwide.
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