WASHINGTON – The U.S. Army has conditionally selected two companies to enter into exclusive negotiations to build and operate commercial hyperscaled data centers on two Army installations. The initiative demonstrates a model for industry relationships under the Army’s Enhanced Use Lease program.

Global Investment Firm Carlyle (NASDAQ: CG) was selected for a project on about 1,384 acres at Fort Bliss, Texas, and CyrusOne, a portfolio company jointly held by funds managed by KKR and BlackRock, was selected for a project on approximately 1,201 acres at Dugway Proving Ground, Utah. The companies were chosen through a rigorous and competitive process and will be responsible for financing, building, operating, maintaining, and decommissioning the data centers on underutilized but non-excess Army land at no upfront cost to taxpayers.

“AI is a strategic asset for the Army,” said Secretary of the Army Dan Driscoll. “It is a force multiplier, supports future transformation and requirements, keeps the Army ahead of our adversaries, and generates resiliency across the force. These data centers are a critical resource to support that strategic imperative.”

This strategic effort, which aligns with the White House’s 2025 executive order on Accelerating Federal Permitting of Data Center Infrastructure, is authorized by Title 10 U.S. Code § 2667, which allows military departments to lease non-excess property.

“By partnering with the private sector to develop cutting-edge data centers on our installations, we are bolstering our national security, driving technological innovation, and building a more resilient and modern Army,” said David R. Fitzgerald, Deputy Undersecretary of the Army. “Our new data center initiatives made possible by enhanced use leasing, are a direct investment in Army priorities.”

The Army is rapidly advancing its data center initiative, with Initial Operating Capability (IOC) at Fort Bliss projected for Fiscal Year 2027, and IOC at Dugway Proving Ground projected for Fiscal Year 2029. The U.S. Army Corps of Engineers will play a key role in the projects’ development, as they conduct lease negotiations and provide critical technical expertise, to include environmental review.

“Ensuring lethality through modernization is a fundamental mission of the U.S. Army Corps of Engineers,” said Lt. Gen. Butch Graham, USACE commanding general. “We are leaning forward with our full spectrum of talent and expertise to support the Army’s Data Center EUL program. By delivering these critical facilities on an accelerated timeline, we are not just building infrastructure; we are engineering a strategic competitive advantage for the Army and the Nation.”

While the selection is a major milestone, the deal is not yet final. It allows the Army and our private industry partners to enter an exclusive negotiation period to finalize lease and other terms. The initiative will enhance computational capability for the warfighter, create a projected significant number of American jobs, and advance the Army’s role as a key economic partner.

Insights From Our Partners:

“We are pleased to have been selected to enter exclusive negotiations with the U.S. Army on this initiative to advance next-generation digital infrastructure. With deep roots in Washington, D.C., Carlyle brings experience at the intersection of government and industry, along with a strong track record investing in and building large-scale energy and digital infrastructure. We look forward to engaging with the Army, as negotiations progress to deliver integrated solutions at scale.”

Ferris Hussein, Partner, Global Infrastructure at Carlyle

“We are honored to be selected by the U.S. Army to enter exclusive negotiations for the Dugway project. This represents a unique opportunity to support the Army’s modernization objectives through a long-term, commercially driven development. We look forward to working collaboratively with the Army as this initiative progresses.”

Eric Schwartz, Chief Executive Officer of CyrusOne.

“U.S. leadership in the global AI race will be decided in large part by who can build the infrastructure fastest. We commend Secretary Driscoll and the Army for recognizing that and developing an innovative public-private model to accelerate it. Through CyrusOne, KKR brings together land, power, and development expertise in an integrated way that cuts through the complexity of large-scale digital infrastructure delivery. We are proud to offer that capability in service of the nation.”

Waldemar Szlezak, Global Head of Digital Infrastructure at KKR.

“We are proud to partner with the Army on this important initiative, bringing together our experience in digital infrastructure and innovation. This collaboration reflects a shared commitment to advancing technology solutions that help meet the demands of a continuously changing global landscape.”

Will Brilliant, Partner and Global Head of Digital Infrastructure at Global Infrastructure Partners (GIP), a part of BlackRock.

U.S. Army Communications and Outreach Office

ABERDEEN PROVING GROUND, Md. — The U.S Army officially activated the Transformation Decision Analysis Center during a ceremony held Wednesday, Feb. 4, at Aberdeen Proving Ground, Md. The event marked the inactivation of the DEVCOM Analysis Center and The Research and Analysis Center, combining their expertise to strengthen the Army’s ability to plan and achieve future force capabilities.

Lt. Gen. Michael McCurry, commanding general, Futures and Concepts Command, served as the virtual host of the event, while Brig. Gen. Robert Born, commanding general, Combat Capabilities Development Command, provided local hosting onsite support.

The activation ceremony underscored the importance of TDAC’s role in the Army’s transformation efforts and its alignment under FCC, a three-star command under the Army’s newly established Transformation and Training Command.

“This is about delivering credible analysis, faster, and with greater impact,” said Larry Larimer, director of TDAC. “Together, DAC and TRAC give the Army unmatched ability to evaluate both the systems we build and the ways we will fight with them. By bringing DAC and TRAC together under FCC, we’re creating a single, authoritative source of analysis for the Army.”

DAC, headquartered at APG, has long provided systems-level analysis, modeling, and simulation capabilities to support acquisition and materiel decisions. TRAC, with centers across the country, specializes in formation-based research, combat simulations, and operational scenario development. The activation unites these complementary capabilities, enabling TDAC to connect materiel analysis with operational concepts more directly than ever before.

During the ceremony, McCurry emphasized the critical role TDAC will play in shaping the Army’s future.

“If Futures and Concepts Command is the architect of the future Army, then TDAC is the rational part of our brain,” McCurry said. “You are the scientists, the war gamers, the critical thinkers who will provide the intellectual horsepower and unvarnished truth required to turn our concepts and requirements into combat-credible reality.”

McCurry highlighted TDAC’s mission: “to ensure the Army’s most critical decisions are underpinned by objective evidence-based analysis. They are, in essence, our institutional safeguard against wishful thinking.”

Larimer echoed McCurry’s sentiments, emphasizing the deliberate choice of the word “decision” in TDAC’s name.

“The word ‘decision’ in Transformation Decision Analysis Center was deliberate. You didn’t see that word in any of our historic organizations, but when you boil it all down, that’s what we do. We inform decisions that are made from the Chief of Staff of the Army all the way down to product managers and others on the system side,” Larimer said.

The activation of TDAC marks a significant step in the Army’s transformation journey, ensuring that future force design and operational planning are informed by rigorous and sophisticated analysis.

As the Army continues to adapt to evolving threats and technologies, TDAC will serve as a cornerstone of its transformation efforts, providing the logic and evidence needed to shape the force of tomorrow.

By Kyle Bond, TDAC Public Affairs

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FORT BELVOIR, Va. – On Feb. 25, the Hon. Brent Ingraham, Assistant Secretary of the Army for Acquisition, Logistics and Technology, joined leaders from the former U.S. Army Program Executive Office (PEO) Enterprise in unveiling the acquisition organization’s new name, logo and colors at an activation ceremony. The organization is now officially known as Capability Program Executive (CPE) Enterprise Software and Services (ES2).

As one of the Army’s 13 newly designated capability program executives, CPE ES2 will continue its core mission of delivering software and services that drive operational readiness, providing seamless support for mission-critical systems and warfighting capabilities. CPE ES2 will report directly to Hon. Ingraham and continue to work closely with the Army Chief Information Officer on technology initiatives.

According to Miranda Coleman, CPE ES2’s acting Capability Program Executive, the organization will remain focused for the rest of fiscal year 2026 on operationalizing low-code/no-code, delivering at speed, maturing Agile practices, maintaining adaptability and flexibility, and managing talent.

“We have a lot of work ahead of us, but I’m confident we’re off to a fantastic start,” said Coleman, whose team highlighted several CPE ES2 software programs for Hon. Ingraham at a pre-ceremony capability demo.

As part of the organization’s transition to becoming a capability program executive, CPE ES2 has renamed its four portfolios to align with Army domains and better convey their areas of focus:

Project Manager (PM) Integrated Personnel and Pay System – Army is now PM Human Resources and Force Management (PM HR-FM).

PM Enterprise Business Systems and Convergence is now PM Logistics and Finance (PM LOG-FIN).

PM Defense Integrated Business Systems is now PM Acquisition, Training and Readiness (PM AT&R).

Project Director (PD) Enterprise Services is now PD Business Technology Solutions (PD BTS).

An updated organizational chart with all CPE ES2’s leaders, portfolios and product offices is available on the newly updated CPE ES2 website.

By Erika Christ

PICATINNY ARSENAL, N.J. – The U.S. Army has established the Portfolio Acquisition Executive for Agile Sustainment and Ammunition, PAE AS&A, at Picatinny Arsenal under the command of Maj. Gen. John T. Reim. The move is a key part of broader Continuous Transformation efforts intended to increase efficiency and accelerate the delivery of critical capabilities to the warfighter.

The new organization was activated at a ceremony held on January 20 at Picatinny Arsenal where several thousand team members from all involved organizations were introduced to the new command. The Assistant Secretary of the Army for Acquisition, Logistics and Technology, the Honorable Brent Ingraham, presided over the ceremony and spoke to the significance of the new organization as a key part of the Army’s Acquisition reform initiative.

Following the ceremony, Ingraham witnessed a live demonstration featuring the Purpose Built Attritable System and a TRV-150 drone dropping smoke and a M69 training grenade onto a target simulating a small group of enemy Soldiers with a vehicle. This showed off one of DEVCOM’s latest innovations, the Picatinny Common Lethality Integration Kit or Picatinny CLIK. These are just a few of the of lethal UAS and counter-UAS technologies being developed by U.S. Army Combat Capabilities Development Command Armaments Center. The DEVCOM Armaments Center now serves as the Systems Center, a key enabler, of the PAE AS&A.

Subject matter experts from the PAE AS&A and DEVCOM Armaments Center then also briefed Ingraham on other lethal UAS, counter-UAS munitions, advanced artillery, next-gen energetics, expeditionary logistics and supply chain enabling systems that are the result of joint efforts of the two Picatinny based organizations.

“This marks a significant milestone in our journey to modernize Army Acquisition,” Ingraham said as he addressed the audience. “We are combining the capabilities of the Joint Program Executive Office for Armaments and Ammunition with critical combat logistic capabilities from PEO Combat Support and Combat Support Services to ensure fully capability alignment under our new structure.”

“Today we turn the page to an exciting new chapter in Army Acquisition,” Ingraham continued. “Every role in the organization plays an invaluable part in this journey. Cross organization engagement and agility are essential in ensuring the success of this transition. The future of Army Acquisition is bright and PAE AS&A is poised to lead the way.”

Ingraham’s visit underscored the installation’s vital role the various commands at Picatinny Arsenal play in maintaining readiness — delivering the capabilities, expertise, and innovation that ensures our Warfighters and allies are equipped to succeed in any environment.

“As we embark on this journey, we align our actions with the strategic guidance provided by our leadership including the President of the United States, the Secretary of War, the Secretary of the Army and the Chief of Staff of the Army,” said Reim who followed Ingraham. “This initiative is not merely a restructuring of our acquisition processes. It is a fundamental rethinking of how we approach the delivery of capabilities to our Soldiers, our joint warfighters, and our international partners.”

Legacies of Excellence

The Army is fundamentally restructuring its acquisition process to prioritize speed and efficiency over traditional approaches. As part of this initiative, the Army is establishing six Portfolio Acquisition Executives with increased focus on capabilities over specific programs.

The transformation includes the integration of the former Program Executive Office Combat Support and Combat Service Support, PEO CS&CSS, into the Capability Program Executive for Combat Logistics, CPE CL, led by Brig. Gen. Camilla White. PEO CS&CSS brings an unmatched history of logistics and sustainment support to the new CPE CL. It encompasses more than 200 programs spanning the Army’s transportation, ordnance, quartermaster, engineer, and training equipment portfolios.

As the CPE CL, it will continue to develop and deliver modernized tactical wheeled vehicles, engineering equipment, watercraft, power generation systems, and other force sustainment capabilities to Army, Joint, and global partners.

At the same time, the Joint Program Executive Office for Armaments and Ammunition, JPEO A&A, will realign into the Capability Program Executive for Ammunition & Energetics, CPE A&E, led by Col. Jason Bohannon. JPEO A&A has consistently delivered innovative acquisition solutions to provide Joint Warfighters and allied partners with overmatch capabilities. The JPEO was comprised of four project offices covering Combat Ammunition Systems, Close Combat Systems, Maneuver Ammunition Systems and Joint Services.

As the CPE A&E, it retains responsibility for life-cycle acquisition management of all conventional ammunition, which includes integrating budgets, acquisition strategies, research and development and life-cycle management across all ammunition families.

CPE CL will be headquartered at Detroit Arsenal, Michigan, while CPE A&E will remain at Picatinny Arsenal. Unlike the previous Program Executive Offices, each PAE will have comprehensive responsibilities and accountability for managing the full spectrum of acquisition activities, including requirements development, technology maturation, product development, testing, contracting, fielding, sustainment, and international sales. This flattened acquisition system empowers PAEs to make timely, risk-based decisions and accelerates capability delivery to Warfighters through problem-focused requirements, smarter contracts, informed risks, and faster pivots.

“This restructure achieves unity of command by establishing and empowering PAE AS&A with the full authority to direct research and development, prototyping, testing, production, and sustainment,” said Reim. “By prioritizing outcomes over processes, this new construct empowers us to award contracts faster by cutting through bureaucracy. Overall, this approach unburdens the acquisition enterprise and allows us to deliver warfighting capabilities at speed and scale.”

Accelerating Ammunition Acquisitions

Under the leadership of Maj. Gen. Reim, PAE AS&A will oversee an entire capability area including all conventional ammunition requirements including direct and indirect fire ammunition, close combat systems, explosives, and pyrotechnics, in addition to logistics, fielding, and sustainment. PAE AS&A will have oversight of the organic munition production facilities.

Maj. Gen. Sean Davis will serve as the new Deputy Portfolio Acquisition Executive adding the sustainment capabilities of the Army’s Combined Arms Support Command, CASCOM to PAE AS&A. CASCOM trains and develops adaptive Sustainment professionals for the total force while integrating innovative Army and Joint Sustainment capabilities, concepts and doctrine to sustain large scale combat operations in a multi-domain operations environment. It is also a part of Transformation and Training Command and is located at Fort Lee, Virginia. PAE AS&A is committed to supporting the warfighter through an innovative approach to ammunition acquisition and sustainment that leverages existing authorities to deliver tangible benefits, including accelerated capability delivery, smarter contracts, and informed risk management.

In addition to the two new CPEs, PAE AS&A will oversee multiple acquisition enablers including senior contracting officials, a test and evaluation integrator, the Sustainment Future Capability Directorate and the system center lead overseeing coordination among Army Combat Capabilities Development Command Centers. The PAE AS&A System Center Lead is Chris J. Grassano, the firector of the DEVCOM Armaments Center. The new structure will enable holistic management of conventional ammunition development, production and sustainment under a single command resulting in increased efficiencies and accelerated delivery of lethality aligned with the emerging Army Warfighting Concept.

Looking Ahead

In conjunction with this reform, the Army is investing $1.1 billion per year to overhaul depots, arsenals, and ammunition plants that produce and sustain Army equipment. This commitment will not only modernize facilities but also strengthen the defense supply chain and create jobs.

For industry partners, these reforms will mean faster contracts, clearer points of entry, and fewer bureaucratic hurdles. Soldiers will benefit from receiving new capabilities, such as drones, long-range fires, and next-generation command and control systems, years faster than before.

By Michael Chambers and Eric Kowal