Carlyle and KKR to Build Data Centers for US Army
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 26 2026
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: 96.900
Low
145.00
Averages
159.67
High
176.00
Current: 96.900
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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- Risk Management Strategy: KKR focuses on lower-risk loans, including senior-secured and asset-backed financing, with only 5% of its credit portfolio in the software sector, allowing it to maintain relative stability and reduce default risk amid market volatility.
- Capital Inflows: Despite market challenges, KKR's credit funds continue to attract significant capital inflows, particularly from its asset-backed financing business, demonstrating its competitiveness and appeal in uncertain market conditions.
See More
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- Risk Management Strategy: KKR focuses on lower-risk loans, including senior-secured and asset-backed financing, while maintaining strict underwriting standards across industries, ensuring the safety of its credit portfolio, even though the software sector constitutes just 5% of it.
- Financial Performance: Despite KKR's stock price dropping over a third in the past year, its insurance business and strategic holdings generated $4.6 billion in adjusted net income over the last 12 months, demonstrating the company's resilience and long-term growth potential through diversified operations.
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- KKR Stake Reduction: KKR will sell up to 1.23 million existing shares, expecting to net €368 million, reducing its stake from 28.6% to 20%, demonstrating its adaptability to market dynamics.
- Positive Market Response: Following SpaceX's successful IPO, investor enthusiasm for space stocks has surged, with OHB CEO Marco Fuchs noting that the market is generally aiming for higher valuations, further necessitating this financing.
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