Army picks companies to build commercial data centers at Fort Bliss, Dugway Proving Ground
Quick Insights
The Bottom Line
The Army awarded contracts to build large commercial data centers at Fort Bliss and Dugway Proving Ground with private financing and 50-year leases.
How This Affects You
Military data centers at Texas and Utah bases will consume substantial electricity and water resources, potentially affecting local utility costs and environmental conditions in those communities.
AI Summary
The Army has entered exclusive negotiations with the Carlyle Group to build a data center at Fort Bliss, Texas, and with CyrusOne to build one at Dugway Proving Ground, Utah, following a Trump administration executive order directing the Defense Department to advance data center infrastructure projects. The Fort Bliss facility will span 1,384 acres with an expected initial operating capability in fiscal 2027, while the Dugway site covers 1,201 acres and is expected operational by fiscal 2029. Secretary of the Army Dan Driscoll framed the projects as critical to supporting AI initiatives, calling artificial intelligence "a strategic asset" and "a force multiplier" for the service. The companies will finance, build, and operate the facilities at no upfront cost to taxpayers, with 50-year leases anticipated. The Army Corps of Engineers will conduct an environmental review, as data centers have drawn opposition in some communities over their substantial electricity and water consumption.
What's Being Done
The Army Corps of Engineers will conduct environmental reviews of the projects; the Carlyle Group and CyrusOne will finance, build, and operate the facilities.
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