Pentagon plans AI data center deployments across multiple military bases and branches.

At Dugway Proving Ground in Utah, on land the Army's own contracting documents describe as previously used for grazing, a company owned by two of the largest investment firms in the world is preparing to build a data center. The site sits about an hour's drive from the nearest community, on the installation where the U.S. military conducts its primary chemical and biological weapons testing. Three parcels there total roughly 3,466 acres, with one parcel of about 1,201 acres already spoken for.

This is one of at least a dozen military installations the Army and the Department of the Air Force have opened to commercial data center developers over the past year and a half. Two of those deals are real; the rest remain proposals.

In late March, the Army conditionally selected two companies to enter exclusive negotiations to build and operate commercial hyperscale data centers on Army land. Carlyle, the global investment firm, was picked for roughly 1,384 acres at Fort Bliss, Texas. CyrusOne, a data center operator jointly held by funds managed by KKR and BlackRock, was picked for the parcel at Dugway. Each project is estimated to cost about $2 billion, according to the Financial Times.

The companies will be responsible for financing, building, operating, maintaining and eventually decommissioning the facilities on what the Army called "underutilized but non-excess Army land at no upfront cost to taxpayers." In exchange for the land, the Army gains access to computing power.

The initiative runs through the Army's Enhanced Use Lease program, driven by a Trump executive order directing agencies to open non-excess federal land to data center development. The U.S. Army Corps of Engineers is handling lease negotiations and environmental review.

"AI is a strategic asset for the Army," Army Secretary Dan Driscoll said in the March announcement. "It is a force multiplier, supports future transformation and requirements, keeps the Army ahead of our adversaries, and generates resiliency across the force." Driscoll told the Wall Street Journal that the Fort Bliss facility would be "the first hyper-scale data center that the Pentagon has ever done."

Only Fort Bliss and Dugway have been awarded so far, and even those remain conditional, pending negotiation. Beyond them, federal contracting documents show the Army considering data centers at Fort Hood, Texas, and Fort Bragg, North Carolina.

The Department of the Air Force put out its own call in 2025 for private AI data center projects on unused land at Arnold Air Force Base, Tennessee; Edwards Air Force Base, California; Joint Base McGuire-Dix-Lakehurst, New Jersey; Davis-Monthan Air Force Base, Arizona; and Robins Air Force Base, Georgia. More recently, it sought bidders for facilities at Joint Base Elmendorf-Richardson, Eielson Air Force Base and Clear Space Force Station in Alaska. Acreage varies enormously—Fort Hood has 207 acres on offer, while Fort Bliss has nearly seven times that.

Dugway is remote by design, although not every site is. Contracting documents show the Army weighing a parcel at Fort Hood within a half-mile of residential and commercial property, and several potential locations at Fort Bragg within one mile of civilian areas and a half-mile of civilian housing.

Proximity to population has made data centers a heated topic in the civilian world. Nearly $156 billion in projects nationwide have been delayed or canceled after local opposition, according to Data Center Watch. In Virginia, which holds the world's highest concentration of data centers, a state-funded study found residents' monthly energy bills could rise by $14 to $37 by 2040.

"So I think the difference between us, the Army, doing a data center, and say Meta or Google, is we're part of the communities that are there, and we are going to engage with them on a routine and regular basis to look for solutions that work for everyone," Col. John Oliver, executive officer for Deputy Army Under Secretary Dave Fitzgerald, told Defense One. "Because, yes, we understand that there's been consternation with data centers."

Two requirements attached to these projects do not apply to commercial builds off base. Proposals must include net-zero water usage and a power plan that does not draw on the local electrical grid. Bidders were also required to describe plans for "local outreach and engagement" and to assess "any risks or opposition" to the project.

The Defense Department's own procurement documents, obtained by Data Center Dynamics, rate the water risk for the El Paso area as "Extremely High." Data centers consume water to cool their servers, and Fort Bliss is where the Army wants its flagship facility.

Army officials want the project to be a net contributor rather than a net drain. In the spring, Fitzgerald traveled to Fort Bliss for a listening session with the commander of the 1st Armored Division, community members, El Paso Water, El Paso Electric and Carlyle. One idea on the table is having the developer drill a new well to feed the city's desalination plant, offsetting what the data center uses.

"We are encouraging Carlyle to do that, so actually make it net-positive," Oliver told Defense One. "We don't know if that's an engineering solution that we can actually get to yet, but we're actively working toward that as a part of the process."

Darrell M. West, a senior fellow at the Brookings Institution who studies data center development, said the approach is sound, and that communities which have accepted the facilities tend to be the ones told the full details in advance.

"People want to know up-front, where the energy is coming from, how much water is being used, how much the overall cost is going to be, and what the noise levels are," West said.

Rep. Cory Mills, a Florida Republican, secured a provision in the House version of the fiscal 2027 defense authorization bill that bars the Defense Department from leasing land for data centers unless developers agree not to install equipment containing components made in China, Russia, Iran or North Korea. The restriction covers certain printed circuit boards, advanced semiconductors and chipsets the department considers a security risk.

"Honored to pass this amendment to protect our military installations from Chinese components being used in data centers on our installations," Mills wrote on X.

The Army objected. The measure would create a "federal land penalty," a service official told Federal News Network, imposing rules on companies building on installations that would not apply to identical projects built anywhere else. "We want Congress to incentivize companies to build on secure federal land, rather than creating barriers that drive them away," the official said.

Rep. John Garamendi, a California Democrat, proposed requiring the Pentagon to evaluate a data center's energy and water consumption, noise and light pollution, and effects on security and supply chains before finalizing any deal. House Armed Services Republicans rejected it.

"We're not opposed to data centers," Garamendi said. "We just want to make sure that if we're going to put a data center on a federal facility, that federal facility is not going to be degraded by the data center."

He raised installation-specific questions: "Is there encroachment on training and operations and the physical and supply chain of security?"

Senate Armed Services Republicans defeated a separate Democratic amendment that would have blocked leasing until the Pentagon finalizes a data center strategy. House appropriators, meanwhile, adopted language acknowledging that data centers "place significant strain on energy and water resources and communities have resisted such projects."

For anyone stationed at or living near one of these installations, several things are known for sure: only two projects have been awarded, and both remain conditional. Fort Hood, Fort Bragg and the Air Force sites are solicitations.