US Army Partners with Carlyle and KKR for AI Infrastructure
Carlyle Group and KKR have been selected by the US Army to construct two large-scale data centres to support the military’s expanding use of artificial intelligence, with each project valued at roughly $2bn, according to Private Equity Wire. The facilities will be located at Fort Bliss in Texas and Dugway Proving Ground in Utah, and will be financed, built, and operated by the private equity firms under long-term leases.
Project Details at Each Site
The army will not contribute capital to the construction but will receive dedicated access to a portion of the computing capacity for operational use, while any excess capacity is expected to be sold commercially. At Fort Bliss, Carlyle Group will develop a 2.5–3GW facility across approximately 1,384 acres, with initial operations expected at 200MW in 2027 and full capacity by 2028. KKR will construct a 1GW data centre at Dugway, utilising its portfolio company CyrusOne, which is jointly owned with BlackRock, on 1,201 acres, with operations projected to begin in 2029.
Strategic Importance of the Centres
Army Secretary Dan Driscoll noted that the ongoing conflict in Iran highlights the growing demand for AI-driven capabilities in modern warfare, and David Fitzgerald, deputy under-secretary of the US Army, emphasised that the army currently spends hundreds of millions annually on data centre usage. The projects are designed to meet rising demands for computational power required for AI applications, including drone swarms, advanced simulations, and real-time operational analysis. According to Private Equity Wire, these initiatives underscore the army’s focus on enhancing its domestic computing infrastructure.
Future Expansion Plans
Both Driscoll and Fitzgerald indicated that similar partnerships with private capital firms are likely to expand in the future, aiming to develop the army’s domestic computing infrastructure while building capabilities that could be replicated globally. The army is particularly focused on establishing computing capacity in the Indo-Pacific region within the current presidential term.
