- The U.S. Army conditionally selected Dugway Proving Ground in Tooele County for a potential data center development.
- CyrusOne was selected for the potential Dugway project, which will comprise approximately 1,200 acres.
- This initiative aligns with Army goals to enhance AI capabilities and national security.
DUGWAY — The U.S. Army on Monday announced that Utah's Dugway Proving Ground has been conditionally selected as one of two military installations to potentially host new data center projects.
Specifically, Dugway was selected to enter into "exclusive negotiations" to build and operate one of the data centers, according to an Army release.
CyrusOne, a company jointly held by funds managed by KKR and BlackRock, was selected for the Dugway project, which will comprise approximately 1,200 acres.
Dugway joins Fort Bliss in Texas as the two installations selected as part of a broader Army initiative to strengthen artificial intelligence capabilities through private industry partnerships.
"AI is a strategic asset for the Army," Secretary of the Army Dan Driscoll said in a statement. "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."
The Army noted in its release that while the selection is an important milestone, no deal has been finalized.
If and when it is, it will mark another big energy project bound for Tooele County.
Just last week, state leaders announced their intent to transform a remote corner of Tooele County into a bustling nuclear energy hub to keep up with the demands of an expanding population and a rapidly changing technology landscape.
Utah Gov. Spencer Cox said the state is finalizing a bid to compete to host what the federal government calls a Nuclear Lifecycle Innovation Campus, part of a national initiative to advance the future of nuclear energy.
The U.S. Department of Energy issued a request for information in January, inviting states to express interest in hosting a nuclear campus. According to the request, campuses "could support activities across the full nuclear fuel life cycle, including fuel fabrication, enrichment, reprocessing used nuclear fuel and disposition of waste."
States could also potentially host advanced nuclear reactors for power generation, manufacturing plants and data centers.
Cox said the effort is part of a push for an "all-of-the-above" approach to energy policy, as the state seeks to dramatically increase its energy production to meet a growing population and rising demand from data centers powering artificial intelligence.
As for the potential Dugway data center, the Army said its push for data centers aligns with the White House's executive order to accelerate federal permitting for data centers.
"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," David R. Fitzgerald, deputy undersecretary of the Army, said in a statement. "Our new data center initiatives made possible by enhanced use leasing are a direct investment in Army priorities."
