US Army Expands Use of 'Improved Use Leasing' to Attract Private Investment in Data Centers

The US Army is expanding the use of ‘Improved Use Leasing’ to attract private investment in data centers, in addition to ammunition and critical mineral processing facilities. The program allows the US government to retain ownership of the land while leasing it to private companies for up to 99 years. The companies are responsible for financing, designing, building, operating, and demolishing the facilities. The US Army is using this program as a key mechanism for public-private cooperation to expand the defense industry base and supply chain. The program is being expanded to include data centers, in addition to ammunition and critical mineral processing facilities. The US Army is also launching the ‘Strategic Capital Initiative’ to leverage private capital and technology to modernize the military. The initiative includes a range of public-private cooperation policies, including long-term leasing, joint investment, and service contracts, in areas such as energy, logistics and supply chain, advanced manufacturing, and critical minerals. The US Army is seeking to leverage private investment to improve its production capabilities and supply chain resilience, particularly in areas such as ammunition and critical minerals. The data centers and power facilities will be operated commercially, while also supporting the military’s operational capabilities and energy resilience.