10:35 AM EDT, 03/26/2026 (MT Newswires) -- (Adds details from the US Army's statement in the sixth and seventh paragraphs)

Carlyle (CG) and KKR (KKR) are in exclusive talks to build two data centers on US Army military bases at an estimated $2 billion each, the Financial Times reported Thursday.

The Iran conflict epitomizes the growing need for data centers within the military as artificial intelligence's role in warfare increases, US Army Secretary Daniel Driscoll said, according to the report.

The report said that the army will provide long-term leases to the companies, which will be tasked with building and managing the data centers.

Carlyle is set to construct a 2.5-gigawatt to 3-gigawatt data center at Fort Bliss in Texas. The plant is expected to begin with 200 megawatts next year, and reach full operational capacity in 2028, the report stated, citing David Fitzgerald, the US Army's deputy under-secretary.

The report added that CyrusOne, jointly owned by KKR and BlackRock ( BLK ) funds, will build a 1-gigawatt data centre on Dugway Proving Ground in Utah, anticipated to be operational in 2029.

In a statement published on its website, the US Army confirmed that it has reached a conditional agreement with Carlyle and CyrusOne to build and operate hyperscaled data centers on Fort Bliss and Dugway Proving Ground, respectively. It did not, however, provide details on costs, capacity, or an expected timeline.

The US Army said that the deal is yet to be finalized, noting that the conditional agreement allows the Army and the companies to negotiate the lease and other terms.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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