US Army Taps KKR and Carlyle for $4B Data Centers, Citing AI

The U.S. Army selected private equity firms KKR and The Carlyle Group to construct two new data centers. Each individual project carries an estimated cost of $2 billion. This initiative aims to modernize military infrastructure and expand artificial intelligence computing capacity.

The Carlyle Group will build a facility at Fort Bliss, Texas. KKR’s portfolio company, CyrusOne, will develop a second site at Dugway Proving Ground in Utah. The Army will grant 50-year leases for underutilized land to allow the private firms to fund, build, and manage the facilities.

Army Secretary Dan Driscoll stated that the conflict in Iran underscores the necessity of integrating AI into modern warfare.