Why It Matters
The U.S. Army is pursuing a massive data center project at Fort Bliss in far East El Paso that would consume 3 gigawatts of electricity by 2029 — roughly equal to the current power demand of all 460,000 El Paso Electric customers combined. The facility would be the third major data center in the region, following Meta’s $10 billion project and the $165 billion Oracle-OpenAI campus in nearby Santa Teresa, New Mexico. Together, the projects could transform the Borderland into a national hub for artificial intelligence infrastructure and power generation.
The project raises immediate questions about water supply, grid connection, and environmental impact. Army officials say construction must begin soon to meet a late 2027 operational target, yet key details about utility connections and power sourcing remain undecided.
What Happened
The Army announced plans for the data center during an April 22 briefing with reporters. Investment firm Carlyle Group would finance construction and operate the facility as part of a national rollout of military AI infrastructure under the Trump administration. David Fitzgerald, deputy undersecretary of the Army, said the installation targets 100 megawatts of initial operating capacity by next year, scaling to 3 gigawatts within five years.
Natural gas combined-cycle turbines are the most likely power source, according to Jeff Waksman, an assistant secretary of the Army. The facility will undergo environmental review before construction starts, Waksman said, though no timeline for that review has been disclosed.
Army officials have not finalized an agreement with Carlyle Group, which was conditionally selected for exclusive negotiations. Neither the Army nor Carlyle has released a cost estimate for the project.
By the Numbers
El Paso Electric maintains approximately 2.9 gigawatts of generation capacity across its entire system, which serves territory from Hatch, New Mexico, to Van Horn, Texas. The utility’s peak customer demand reached just over 2.3 gigawatts during summer 2023. The Fort Bliss data center alone would require power equivalent to the utility’s total current generation capacity.
The Army aims to have the facility operational by the end of 2027, requiring construction to begin in the near term. Initial operating capacity of 100 megawatts is targeted for next year, with expansion to 3 gigawatts by 2029.
Zoom Out
The Fort Bliss project is part of a broader Department of Defense push to expand AI computing capabilities. Fitzgerald framed the investment as a strategic priority driven by modern warfare’s reliance on massive data processing. Military installations across the country are expected to host similar facilities.
El Paso’s emergence as a data center hub reflects the region’s proximity to power infrastructure and available land. Meta is building a $10 billion facility in Northeast El Paso, while Oracle and OpenAI are constructing a $165 billion campus in Santa Teresa, just across the state line. The combined electricity demand from all three projects would require significant expansion of regional power generation.
What’s Next
El Paso Water said it was recently brought into discussions and has only preliminary information. Fort Bliss Water provides service to the installation, though El Paso Water can offer backup service according to project documents. Whether the data center will connect to the municipal water system remains unclear, and the utility noted that construction and water use would occur entirely on federal property.
El Paso Electric confirmed it has not received a formal service request from the Army. Questions about whether the facility will connect to the regional power grid or generate electricity independently remain under review by Fort Bliss leadership. The utility deferred further comment to Army officials.
Environmental review is pending, and the Army has not disclosed a timeline for completing that process before construction begins. Carlyle Group did not respond to requests for comment about project details or anticipated environmental impact.