Enhanced use lease for commercial data centers
ID: W912-QR-DACA27-1-26-102Type: Solicitation
Overview

Buyer

DEPT OF DEFENSEDEPT OF THE ARMYW072 ENDIST LOUISVILLELOUISVILLE, KY, 40202-2230, USA

NAICS

Lessors of Nonresidential Buildings (except Miniwarehouses) (531120)

PSC

LEASE/RENTAL OF UNIMPROVED REAL PROPERTY (LAND) (X1PC)
Timeline
    Description

    The Department of the Army is soliciting proposals for Enhanced Use Leases (EULs) to develop commercial data centers on non-excess land at Fort Hood, Fort Bragg, Fort Bliss, and Dugway Proving Ground. Interested private, public, and non-profit entities are invited to submit competitive proposals for long-term leases, with a primary focus on financing, designing, constructing, operating, and maintaining the data centers while providing consideration to the Army through cash or in-kind services. This initiative aims to maximize the financial return to the Army by utilizing available land without interfering with ongoing military operations or community activities. Proposals are due by January 15, 2026, and interested parties can contact Lisa Grossman at Lisa.Grossman@usace.army.mil for further information.

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    Section 2667 of the US Code allows military departments and Defense Agencies to lease non-excess real or personal property not currently needed for public use, provided it promotes national defense or public interest. Leases are typically limited to five years, though longer terms are possible if deemed beneficial. Key conditions include fair market value consideration (cash or in-kind), the option for the lessee to make property improvements as part of the payment, and a provision for the Secretary concerned to revoke the lease. The law also details types of in-kind consideration, such as property maintenance, new facility construction, and utility services, with an emphasis on energy resilience. Special rules apply to properties involved in base closures or realignments, allowing for leases at less than fair market value if a public interest is served. Proceeds from leases are deposited into special accounts for property maintenance, new construction, and administrative expenses, with at least 50% reserved for the originating installation. Competitive procedures are generally required for selecting lessees, with exceptions for public interest or specific renewals like those for naval oceanographic research ships or on-base financial institutions. The interest of a lessee may be taxed by state or local governments. The section excludes oil, mineral, or phosphate lands and allows for leases to educational agencies at less than fair market value. The overall purpose is to provide flexible mechanisms for the military to manage and utilize its property assets while ensuring public benefit and responsible financial practices.
    This Business Terms Agreement (BTA) outlines the conditions for a Selected Offeror to enter into an Enhanced Use Lease (EUL) with the Department of the Army (DA) for a data center at an Installation. The BTA, along with the Offeror's Proposal and an Agreed Milestone Timetable, establishes preconditions for executing the EUL. The Selected Offeror bears all risks of error in their proposal and is responsible for their own due diligence regarding the leased properties, including compliance with laws and feasibility. Failure to meet milestones or other obligations can result in termination of discussions by the DA, with no fees or penalties owed to the Offeror. The DA makes no warranties regarding the suitability of the properties. The Selected Offeror indemnifies the DA against claims arising from their participation in the RFP process. The Offeror must execute all transaction documents promptly and affirms compliance with all RFP terms, including ethical and anti-collusion provisions. Disputes are to be resolved under the Contract Disputes Act, and the BTA is not assignable without DA consent. Force Majeure events may extend performance deadlines. The BTA is binding upon execution by the DA and outlines notice procedures.
    This Department of the Army Lease outlines the terms and conditions for leasing premises on a military installation. The lease, governed by 10 U.S.C. § 2667, grants the Lessee rights to develop, construct, operate, and maintain facilities, while the Government retains fee title and general access. Key provisions cover lease term, early termination, and renewal options. The Lessee must comply with all federal, state, and local laws, as well as Installation rules, including those for antiterrorism, cybersecurity, and access. Environmental matters are extensively addressed, requiring the Lessee to comply with environmental laws, maintain environmental plans, and indemnify the Government for any Lessee-caused environmental damage. The Lessee assumes all risks of loss and must maintain comprehensive insurance, including property and commercial general liability. The document also details utility services, alterations, maintenance, default and termination procedures, and dispute resolution. It emphasizes the Lessee's responsibility for all costs and compliance, with strict adherence to environmental and safety regulations.
    Attachment D, associated with Request for Proposals No. DACA27-1-26-102, details a 207-acre undeveloped parcel (Parcel 1) available for lease at Fort Hood, Coryell, Texas. Fort Hood is a large military installation spanning 214,968 acres, primarily used for training and deploying heavy forces. The available property is open, partially eroded grassland, historically used for sparse rural housing and farming before Army acquisition in the 1940s. It is strategically located near major roadways like Tank Destroyer Boulevard, SH-9, and I-14, and is within an Approach-Departure Clearance Surface from Killeen-Fort Hood Regional Airport, imposing height restrictions (375-417 feet). The property benefits from existing utilities including electricity (ONCOR), natural gas (Atmos), water (Bell County WCID #1, supplied by Belton Lake), and wastewater services (Bell County WCID #1), with fiber connectivity nearby. Environmental considerations include Topsey Clay Loam soil, slow infiltration rates (Hydrologic Soil Group C), potential air permit requirements from TCEQ depending on project size, and the presence of endangered species like the Golden-Cheeked Warbler and Bald Eagle. There are no known chemical, biological, radiological, or nuclear threats, though quality-distance arcs exist when ammunition is present at the Railhead. The property falls under concurrent federal legislative jurisdiction, meaning both state and federal laws apply, and the state retains taxation rights without interfering with federal functions. This document serves as an informational summary for potential offerors considering the lease of this parcel.
    Attachment E of RFP No. DACA27-1-26-102 details available properties at Fort Bragg, North Carolina, for lease. Six undeveloped parcels, totaling 734 acres of mixed pine and hardwood forest, are offered across Cumberland and Harnett Counties. These parcels, currently used for non-kinetic training, are outside the cantonment area. Key considerations include height restrictions near Simmons and Pope Army Airfields, proximity to DoD and civilian areas, and existing training roads. Environmental concerns are significant, with federally endangered plant and animal species requiring surveys and potential mitigation. Parcel 1 has a PFAS contamination site and Cross Creek traversing it, while Parcels 2 and 3 contain archaeological sites with digging restrictions. Multiple parcels have rare plant sites, streams, and wetlands requiring specific permitting. The document also outlines Fort Bragg's utilities (electricity, natural gas, water, wastewater, fiber) and its mixed legislative jurisdiction (proprietorial, concurrent, exclusive), emphasizing the need for Offerors to understand civil enforcement on the properties.
    Attachment F of RFP No. DACA27-1-26-102 details available property at Fort Bliss, El Paso County, Texas, an Army installation spanning 1.12 million acres. The RFP offers a 1,384-acre undeveloped parcel not used for critical operations but potentially subject to past weapons firing. The property is near El Paso and private land, with access to US 62/180. It has various utility easements from companies like El Paso Natural Gas and Electric. Fort Bliss has robust utility infrastructure, including electricity from El Paso Electric, natural gas from Kinder Morgan and ONEOK, and water from wells and El Paso Water. Wastewater and fiber services are also available. Environmental considerations include sandy soil, the absence of wetlands or floodplains, and the need for air quality permits. Protected species like the Burrowing Owl and Texas horned lizard are present, along with potential hazardous materials and archaeological sites. Fort Bliss operates under proprietorial, concurrent, and exclusive legislative jurisdictions, requiring offerors to understand the legal framework.
    Request for Proposals No. DACA27-1-26-102 (Attachment G) outlines the availability of three undeveloped properties—Site A (English Village), Site B (North Boundary), and Site C (West Dugway)—totaling 3,466 acres at Dugway Proving Ground (DPG) in Tooele County, Utah. DPG is a key test center for Chemical and Biological Defense. The document details the installation's purpose, land usage, access, and available utilities (electricity, natural gas, propane, water, wastewater, and fiber). Extensive environmental considerations for each site are provided, covering soil, topography, air quality, archaeological resources (including NRHP-eligible sites and the need for tribal consultation), migratory bird protections, endangered species surveys (kit fox, dark kangaroo mouse, pinyon jays, burrowing owl, golden eagle), wildland fire risks, and the absence of CBRN threats on the sites. Legislative jurisdiction at DPG is predominantly concurrent federal, with a small portion having exclusive federal jurisdiction. Offerors are responsible for understanding these jurisdictional nuances, particularly regarding civil matters.
    The Department of Defense (DoD) outlines its procedures for implementing the National Environmental Policy Act (NEPA) to ensure environmental considerations are integrated into decision-making. These procedures detail when NEPA review is required, how to determine the appropriate level of review (Categorical Exclusions, Environmental Assessments, or Environmental Impact Statements), and the processes for preparing and publishing these documents. Key aspects include page and time limits for EAs and EISs, public involvement, lead and cooperating agency roles, and methods for efficient environmental reviews such as tiering and reliance on existing documents. The document also covers specific procedures for applicant-prepared NEPA documents, classified actions, and emergency circumstances. The goal is to facilitate coordinated, consistent, predictable, and timely environmental reviews while reducing unnecessary burdens and delays.
    The Department of the Army (DA) is soliciting proposals for Enhanced Use Lease (EUL) opportunities to develop commercial data centers on non-excess land at Fort Hood, Fort Bragg, Fort Bliss, and Dugway Proving Ground. This Request for Proposals (RFP) seeks competitive bids from private, public, and non-profit entities for a 50-year lease, with potential for renewal. Offerors must finance, design, construct, operate, and maintain the data centers, providing consideration to DA through in-kind services, cash, or a combination. Proposals will be evaluated on project description, plan, financial capability, organizational experience, and proposed rent. Key considerations include environmental compliance (NEPA, ECP), infrastructure development, security, and adherence to various federal regulations. The deadline for proposals is January 15, 2026.
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