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News · Phoenix

Air Force Proposes 300-Acre Data Center Lease at Davis-Monthan

A 50-year federal lease for private AI infrastructure on a military base has drawn scrutiny over security vulnerabilities and private equity ownership.

By Lucia Orlov ·

Illustration for: Air Force Proposes 300-Acre Data Center Lease at Davis-Monthan
Illustration generated for this article, not a news photograph.

The United States Air Force has proposed leasing approximately 300 acres of Davis-Monthan Air Force Base to private developers for the construction of artificial intelligence data centers. The plan places large-scale commercial infrastructure directly on federal military property, a move that has prompted security experts to question the long-term implications for national defense.

The proposal is part of a wider initiative following an executive order signed by President Donald Trump in late July 2025. That order authorized the use of federal land for AI data centers. Under the specific lease terms for Davis-Monthan, the government retains the option to purchase services and power from the facilities but is not contractually obligated to do so. The leases are structured for a 50-year term under a federal statute that permits the leasing of underutilized military land to support national defense goals.

Two private entities have been selected to build the first two data centers at the base. The developers are the Carlyle Group, a private equity firm, and CyrusOne, a company jointly owned by private equity firm KKR and asset manager BlackRock. The Army stated that these facilities will provide computational power for AI applications, including drone swarms and advanced simulations.

Roberto Gonzalez, an expert on U.S. militarism at San Jose State University, voiced strong concerns about the proposal. He argued that introducing private commercial interests into secure military zones creates new vulnerabilities. "What we are talking about here is introducing a whole new level of vulnerability into America's military bases and even putting American servicemen and women in harm's way who are stationed there," Gonzalez said. He noted that the physical location does not eliminate the threat if the military becomes heavily reliant on AI systems that enemies could target.

Gonzalez highlighted the potential risks associated with the financial backers of these projects. He questioned how the companies were vetted for security clearance, noting that private firms financed by venture capital or private equity on sensitive sites could be targets for espionage or sabotage. "Anytime you're talking about installing data centers on a sensitive site like a military base, there's always the possibility that those that are servicing or maintaining the data centers could be involved in espionage or could be involved in sabotage," he said.

Community opposition to data center expansion is also growing in nearby Phoenix suburbs. In Ahwatukee, developer Menlo Digital is constructing five two-story buildings that will total one million square feet on a 38-acre site. The project is located off 48th Street, north of Chandler Boulevard. Separately, another developer received a military compatibility permit from the Maricopa County Board of Supervisors to build a data center near Luke Air Force Base. That developer coordinated with base officials to ensure the project aligns with safety and flight criteria.

The Davis-Monthan proposal is one of five bases where the Air Force plans to host these facilities. The 50-year lease structure means the private presence on the base will persist for half a century, solidifying the partnership between the military and the private AI sector.

Source: KTVK

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