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US Army Selects Carlyle, CyrusOne for Data Center Projects

March 26, 2026

2 min read

Key Takeaways

The US Army selected Carlyle and CyrusOne for data center projects.
Projects will be located at Fort Bliss and Dugway Proving Ground.
Partnerships aim to drive technological innovation and national security.
Agreements are expected to be finalized by July 1.

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Strategic Implications

This selection may indicate the Army's growing reliance on private sector partnerships to modernize its installations and drive technological innovation. The use of Enhanced Use Lease authority suggests a shift towards more self-sustaining ventures, which could benefit the Army's national security priorities and reduce reliance on taxpayer dollars.

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What Happened

Private Sector Partnerships Boost Army Modernization Efforts

The US Army has selected investment firm Carlyle and portfolio company CyrusOne to develop commercial hyperscale data centers on Army installations as part of its Enhanced Use Lease program. The projects, located at Fort Bliss in Texas and Dugway Proving Ground in Utah, aim to bolster national security and drive technological innovation. According to David Fitzgerald, performing the duties of deputy undersecretary of the Army, the partnerships are a direct investment in Army priorities. The announcement was made by Breaking Defense.

Source

Companies Mentioned