Army Taps Private Capital to Build Data Centers on Its Bases

Article content(Bloomberg) — The US Army has announced the first group of companies that will build data centers on military bases, as the armed forces address a growing need for artificial intelligence computing power.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentThe Army plans to work with Carlyle Group Inc. to build a data center at Fort Bliss in Texas, and KKR & Co.-backed data-center operator CyrusOne to construct another at Dugway Proving Ground, Utah, Army Secretary Dan Driscoll told reporters. Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentEach project is expected to involve the companies investing billions of dollars. Article contentArticle contentThe centers will be built on underused Army land through 50-year leases, allowing private developers to finance construction and operations in exchange for access to computing power. Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article content“We just have massive demands,” Driscoll said. “This is the first of many, many projects that we hope to announce.”Article contentPresident Donald Trump signed an executive order in December to restrict state-level regulation, the latest in a series of steps he’s taken to bolster the AI industry since his return to the White House. Those moves are intended to make it easier to build infrastructure and increase energy supply for data centers.Article contentDavid Fitzgerald, the senior official performing the duties of under secretary of the Army, said this new model was designed to avoid boom-and-bust spending cycles tied to government budgets. Instead, the private sector will invest billions to set up shop on Army land. Article contentThe Fort Bliss campus-style center would be set across roughly 1,384 acres and is being structured to generate its own energy and a closed water system to avoid stresses on local communities. The center, he said, would bring 2,000 new jobs to the El Paso region. The Dugway-based center would be built on a 1,200 acre parcel, anchoring more economic activity in a remote region.Article contentThe AI drive has emerged as a politically contentious issue in November midterm elections, as voters bristle over the rapid development of data centers in their communities, energy use that’s driving up utility costs, potential job losses from the technology and worries about environmental harm.Article contentTrending Meet the Canadian e-bike maker who is redefining the factory floor Electric Vehicles LNG Canada signs key pipeline agreement required for phase two expansion Energy Canada’s economic performance has been lagging the U.S. for years, and Statistics Canada delves into why Economy Why market bets for interest rate hikes in Canada are so high Economy Wealthsimple receives regulatory approval to offer prediction markets to investors Fintech Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Meet the Canadian e-bike maker who is redefining the factory floor Electric Vehicles LNG Canada signs key pipeline agreement required for phase two expansion Energy Canada’s economic performance has been lagging the U.S. for years, and Statistics Canada delves into why Economy Why market bets for interest rate hikes in Canada are so high Economy Wealthsimple receives regulatory approval to offer prediction markets to investors Fintech