Carlyle and KKR to Build Data Centers for US Army
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: seekingalpha
- Project Investment Scale: Carlyle and KKR plan to invest up to $2 billion each in building two data centers on military bases, highlighting the potential for long-term collaboration with the military infrastructure.
- Data Center Capacity: Carlyle will construct a 2.5-3 gigawatt data center at Fort Bliss in Texas, while KKR, through its subsidiary CyrusOne, will build a 1 gigawatt data center at Dugway Proving Ground in Utah, addressing the military's data processing needs.
- Long-Term Lease Agreements: The Army will provide long-term leases for the data centers, ensuring that while the Army does not invest, it can exclusively utilize a certain percentage of the centers' capacity, enhancing the strategic value of the project.
- Negotiation Progress: Although Carlyle, KKR, and the Army have not finalized agreements, they are engaged in exclusive negotiations, indicating a strong commitment from all parties and the potential for future collaboration.
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Analyst Views on KKR
Wall Street analysts forecast KKR stock price to rise
9 Analyst Rating
9 Buy
0 Hold
0 Sell
Strong Buy
Current: 90.910
Low
145.00
Averages
159.67
High
176.00
Current: 90.910
Low
145.00
Averages
159.67
High
176.00
About KKR
KKR & Co. Inc. is a global investment firm that offers alternative asset management as well as capital markets and insurance solutions. The Company’s segments include Asset Management, Insurance and Strategic Holdings. Asset Management segment offers a range of investment management services to investment funds, vehicles and accounts and provides capital markets services to portfolio companies and third parties. Asset Management segment includes five business lines: Private Equity, Real Assets, Credit and Liquid Strategies, Capital Markets and Principal Activities. Insurance segment is operated by Global Atlantic, which is a United States retirement and life insurance company that provides a suite of protection, legacy and savings products and reinsurance solutions to clients across individual and institutional markets. Global Atlantic offers individuals fixed-rate annuities and others. Strategic Holdings segment represents its participation in its core private equity strategy.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Data Center Capacity: Carlyle will construct a 2.5-3 gigawatt data center at Fort Bliss in Texas, while KKR, through its subsidiary CyrusOne, will build a 1 gigawatt data center at Dugway Proving Ground in Utah, addressing the military's data processing needs.
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- Data Center Capacity: Carlyle will construct a 2.5-3 gigawatt data center at Fort Bliss in Texas, while KKR, through its subsidiary CyrusOne, will build a 1 gigawatt data center at Dugway Proving Ground in Utah, addressing the military's data processing needs.
- Long-Term Lease Agreements: The Army will provide long-term leases for the data centers, ensuring that while the Army does not invest, it can exclusively utilize a certain percentage of the centers' capacity, enhancing the strategic value of the project.
- Negotiation Progress: Although Carlyle, KKR, and the Army have not finalized agreements, they are engaged in exclusive negotiations, indicating a strong commitment from all parties and the potential for future collaboration.
See More
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- Employee Cash Payouts: The 650 employees of CoolIT will receive cash payouts equivalent to one to eight years of salary, along with prepaid personal financial coaching and tax preparation services, reflecting KKR's commitment to long-term employee value and its broad-based ownership program.
- Energy Efficiency Gains: CoolIT's liquid cooling systems are utilized in over 300 data centers worldwide, achieving 30-40% energy savings compared to air cooling, with an estimated 2.18 billion kWh of energy saved by 2025, supporting sustainable growth in data centers amid rising AI demands.
- Future Growth Potential: Since 2023, CoolIT has doubled its workforce, expanded manufacturing to over 300,000 square feet, and increased coolant distribution unit capacity by 25 times, with goals of achieving 4x revenue growth and 10x EBITDA growth by 2026, indicating strong market prospects and growth potential.
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- Employee Cash Payouts: Upon closing, CoolIT's 650 employees will receive substantial cash payouts ranging from about one year to over eight years of annual salary, reflecting KKR's commitment to an ownership culture that aligns employee interests with company success.
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- Employee Payouts: All 650 CoolIT employees will receive substantial cash payouts ranging from approximately one year to over eight years of annual pay, reflecting KKR's commitment to employee ownership programs and enhancing employee engagement and motivation.
- Energy Efficiency Gains: CoolIT's liquid cooling systems can reduce energy consumption by 30-40% compared to traditional air-cooled data centers, with an estimated 2.18 billion kWh in energy savings projected by 2025, enough to power around 200,000 homes, highlighting its contribution to sustainability.
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