Two trends, seemingly separate, have been accelerating over the past few years. First, Wall Street has been plowing billions of dollars into financing data centers. Second, the U.S. military has been ramping up its use of artificial intelligence (AI).
Now, these two trends are directly merging. In late March 2026, the U.S. Army announced its selection of companies to build and operate two hyperscaled data centers on two different military installations. Both data centers — one at Fort Bliss, Texas, the other at Dugway Proving Ground, Utah — will be backed by some of the world’s top Wall Street firms.
An Army spokesperson told Truthout that the Army has entered into “an exclusive negotiation period” with the companies to negotiate “specific lease economics” on what will be “long term, 50-year” leases.
The spokesperson also said that “[i]nstead of receiving cash for the lease, the Army will be compensated through ‘in-kind consideration,’” meaning that “the Army accepts services or improvements of equal or greater value in lieu of cash rent — specifically, a key portion of the dedicated data computation capabilities to directly support our warfighting needs.”
The data centers will be “100 percent privately financed, built, and operated by the developers,” said the Army spokesperson, and confirmed that they “are indeed commercial data centers” that will be allowed to sell off excess computing capacity commercially.
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