TL;DR · 30-second read
The Short Version
The United States military is letting private companies build giant computer centers for artificial intelligence on its bases. One in Texas will cover more than two square miles of Fort Bliss. Another is planned for a Utah testing range.
The catch is electricity. A local newsroom estimated the Texas site alone could use more power than all 460,000 homes and businesses on El Paso’s power system combined. Members of Congress from both parties now want the Pentagon to explain where that power and water will come from before building starts.
Lawmakers from both parties are trying to attach conditions to the Defense Department’s program of leasing military land to private companies for AI data centers, Politico reported on July 25, 2026. The Army has signed two conditional agreements: Carlyle Group will build on 1,384 acres at Fort Bliss in El Paso, Texas, by 2027, and CyrusOne will build on 1,201 acres at Utah’s Dugway Proving Ground by 2029, according to an Army fact sheet. The Air Force has offered unused land on five installations.
Most of the proposals would require briefings, studies or planning rather than stopping construction. A provision from Rep. Ken Calvert (R-Calif.) requiring DOD to brief Congress on community impacts before construction was adopted in the House Defense spending bill, and a provision from Rep. Cory Mills (R-Fla.) barring land deals for data centers with significant components made by U.S. adversaries is in the House-passed NDAA. Broader Democratic amendments, including one from Rep. John Garamendi (D-Calif.), were rejected.
Executive Summary
The Pentagon’s plan to host commercial hyperscale data centers on military bases, set in motion by President Trump’s executive order last year directing the department to identify suitable sites, has moved from policy to signed deals. The Army describes its Fort Bliss and Dugway projects as coming at “no upfront cost to taxpayers” and including “comprehensive behind-the-meter power and water solutions”, meaning the sites would generate or source their own electricity and water rather than draw on the local utility.
That promise is now the center of the congressional debate. The measures gaining traction do not question whether the military can offer land; they ask the Defense Department to show, before construction, how these facilities will be powered and cooled without straining base infrastructure, local grids, or water supplies. For developers, that turns power and water planning from a project detail into a condition of doing business on federal land.
The House and Senate still have to reconcile their versions of the defense authorization and spending bills, possibly after the November elections, so the final terms remain open.
Land Is the Part the Military Can Give Away
The Army’s pitch to developers is built on land: large, secured, already federally controlled parcels offered without an upfront cost to taxpayers. Fort Bliss alone puts 1,384 acres on the table, and Dugway another 1,201. Even supporters in Congress frame the benefit in land terms. Rep. Derrick Van Orden (R-Wis.) said he favors base siting if it means fewer data centers on farmland that could otherwise grow crops.
But acreage is not what limits an AI data center. The binding constraint is electricity, and then water for cooling. El Paso Matters has estimated that the Fort Bliss facility could require more power than all of El Paso’s 460,000 electricity customers combined. Whether or not that estimate holds at full build-out, it sets the scale: a single campus of this kind can rival a mid-sized city’s demand. No amount of available land changes that arithmetic.
That is why the Army’s promise of “behind-the-meter” power carries so much weight. Behind-the-meter means generation on the customer’s side of the utility connection, so the data center would not simply pull from the local grid. If it works, the developer absorbs the cost and risk of building a power plant. If it falls short, the load lands on the regional utility and its ratepayers, which is precisely the outcome lawmakers from both parties say they want the Pentagon to rule out in advance.
Congress Is Asking for Proof, Not Stopping the Build-Out
The legislative scorecard shows where the consensus sits. Proposals to halt or ban construction failed: Rep. Rashida Tlaib’s (D-Mich.) amendment to prohibit AI data centers on federal lands was rejected, as was a Senate Democratic amendment to block leasing until DOD finalizes a data center strategy. Garamendi’s pre-deal certification requirement, covering energy, water, noise, light, security and supply chains, was voted down in House Armed Services.
What advanced is disclosure. Calvert’s provision, written into the House Defense spending bill, acknowledges that data centers “place significant strain on energy and water resources” and requires a pre-construction briefing on community impacts. A bipartisan Energy-Water package asks the Department of Energy to mitigate data centers’ effects on grid reliability and ratepayers. Even critics of Garamendi’s approach, such as Rep. Pat Harrigan (R-N.C.), suggested annual impact reports as an alternative. The live disagreement is not whether the Pentagon must account for power and water, but whether that accounting comes before a deal is signed or after.
DOD officials argue the department has already accounted for these impacts and warn that added requirements could slow the military in a competitive AI race. That concern is legitimate; so is lawmakers’ complaint, voiced by Rep. Mike Levin (D-Calif.), that they have not received a briefing. Both claims could be tested quickly if the department published the power and water figures behind its agreements.
The Supply Chain Clause May Bite Harder Than the Studies
The provision with the most direct commercial consequence may be the one from Mills, now in the House-passed NDAA. It would bar DOD from providing land to data centers containing “significant components” manufactured by U.S. adversaries. An unnamed Army official told the Federal News Network that this would create an “unworkable standard” that could drive commercial partners away from Army land.
Unlike a briefing requirement, a component rule reaches into the equipment bill of materials: servers, networking gear, power and cooling systems. How much it bites depends on how “significant” is defined and enforced, and on whether it applies to behind-the-meter generation equipment as well as computing hardware. For developers weighing base sites against private land, a sourcing rule that is hard to certify could matter more to the economics than any study requirement.
Who Carries the Risk
For Carlyle and CyrusOne, the emerging terms shift risk onto the developer: finance the facility, supply its own power and water, and, if Mills’ language survives conference, document the origin of key components. For base commanders, the question is whether on-site generation and water use interact with installation readiness. For neighboring communities such as El Paso, the stakes are grid reliability and electricity bills, the same concern driving the House Energy and Commerce Committee’s Ratepayer Protection Act, H.R. 9340.
The broader lesson for anyone siting AI infrastructure is that federal land does not bypass the power question. It relocates it, and adds a layer of public accountability that private sites do not face.
Background
AI data centers pack large numbers of power-hungry processors into a single site, and their electricity and cooling needs have become a flashpoint for utilities, regulators and communities across the United States. Hyperscale facilities, the largest class of data center built for cloud and AI workloads, can draw power on the scale of a small city and often use significant volumes of water for cooling.
The Defense Department entered this market after a presidential executive order last year directed it to identify military sites suitable for AI infrastructure. The Army’s model leases base land to private developers, who build and operate the facilities, and the Air Force has offered unused land at five installations. Carlyle Group is an investment firm; CyrusOne is a data center developer and operator. Source: The Pentagon wants to build data centers. Congress would like a word. (Politico) — bipartisan congressional scrutiny of Defense Department land leases for AI data centers at Fort Bliss, Dugway and Air Force installations.Sources