Army turns to private capital for base data centers and supply chains

The U.S. Army is pursuing privately financed projects on military installations, including hyperscale data centers, as it looks to speed modernization without relying only on taxpayer-funded construction. Marc Andersen, the Army’s assistant secretary for financial management and comptroller, said the effort is meant to connect private capital, technology and national-security goals.

Writing in Fortune, Andersen said the Army has spent the past year speaking with investors, infrastructure funds, energy developers, manufacturers, technology companies and financial institutions with “hundreds of billions of dollars” in investment capacity. He said the response was stronger than expected and has moved from discussion to signed projects.

Andersen said the Army this year announced two agreements to build hyperscale data centers on military installations. He described the projects as representing billions of dollars in private investment and said they would not require taxpayer-funded construction.

According to Andersen, the data center deals are intended to support rising computing, power-generation and digital demands linked to artificial intelligence and Army modernization. He said the projects also show how military bases can be used as sites for infrastructure tied to both economic competition and military capability.

Base infrastructure and private financing

Andersen argued that military installations should be viewed not only as readiness and force-projection sites, but also as economic assets. He said many are located near transportation networks, energy corridors, industrial infrastructure, research institutions and skilled labor pools.

The Army’s approach, as Andersen described it, treats installations as potential platforms for industrial projects, energy resilience and growth. He said each private dollar aimed at national-security needs can allow public funds to be used elsewhere for taxpayers.

The push goes beyond data centers. Andersen said the Army has launched efforts focused on rare earth elements, critical minerals processing and advanced manufacturing. He said those initiatives are designed to reduce U.S. reliance on foreign supply chains for materials used in modern weapons systems while strengthening domestic industrial capacity.

Andersen also said the Army is pursuing industrial-base upgrades using automation, robotics, digital engineering and next-generation manufacturing technologies. The goal, he said, is to make the industrial base more resilient and responsive in both peacetime and wartime surge conditions.

Economic security and military power

Andersen framed the effort as part of a broader shift in how the Army links economic and military strength. He wrote that supply chains, energy systems and industrial capacity now underpin both economic growth and military power.

He contrasted the U.S. model with China’s, saying China relies on state direction while the United States can draw in private enterprise, investors, innovators, workers and communities. Andersen said America’s advantage comes from attracting capital and encouraging innovation rather than relying only on state control.

The commentary was published as part of Fortune’s “250 Years of Innovation” series. Fortune identified Andersen as the 18th assistant secretary of the Army for financial management and comptroller, responsible for resourcing the Army to fight and win U.S. wars.

Andersen compared the current effort with earlier periods of U.S. mobilization, including World War II’s Arsenal of Democracy, the Moon landing and the Cold War. He said the scale of private-capital participation will help determine how fast the United States can mobilize its economy, industrial base and technology sector for future competition.

This story draws on original reporting from Fortune.