Why it matters
The strategic read
Adds the federal-land version of the AI data-center land rush. Dugway is not a signed commercial lease yet, but the Army’s conditional selection of CyrusOne shows military installations becoming powered-land platforms for private AI infrastructure, with USACE, environmental review and force-protection terms as execution gates.
Source-supported terms
What was disclosed
- 01
The U.S. Army conditionally selected CyrusOne, a portfolio company jointly held by funds managed by KKR and BlackRock, for a commercial hyperscale data-center project at Dugway Proving Ground.
- 02
The Army said the Dugway project covers approximately 1,201 acres of underutilized but non-excess Army land.
- 03
CyrusOne is responsible for financing, building, operating, maintaining and decommissioning the data center at no upfront cost to taxpayers if final terms are reached.
- 04
The Army says the selection allows exclusive negotiations to finalize lease and other terms under the Enhanced Use Lease program.
- 05
Initial Operating Capability at Dugway is projected for fiscal year 2029.
- 06
The U.S. Army Corps of Engineers will conduct lease negotiations and provide technical expertise, including environmental review.
Disclosure boundary
What is known—and what is not
Conditional selection and exclusive-negotiation milestone only; final lease, customer/workload mix, capacity in MW, power-generation plan, financing terms, environmental review results, construction contract and operating terms are not final or public.