Carlyle pivots back to Washington with Army-backed data-center lease

Carlyle Group announced a 50-year lease of federal property at Fort Bliss, Texas, to construct a data-center in collaboration with the US Army, reflecting CEO Harvey Schwartz’s effort to re-anchor the firm in Washington where it was founded. Schwartz has relocated annual investor gatherings to the capital, invited senior policymakers such as Energy Secretary Chris Wright and World Bank President Ajay Banga, and hired former officials including Will Kinzel and James Stavridis.

The firm is also raising a defense-focused fund targeting up to $3 billion and has recently closed its first deal under that mandate. This renewed emphasis on defense aligns with Pentagon plans for $200 billion of private-sector deals and loosening retirement-account rules that could channel more capital to firms like Carlyle. While competitors such as JPMorgan and Bank of America launch large infrastructure initiatives, Carlyle’s Washington-centric strategy aims to leverage its historic connections to capture emerging government contracts. The shift underscores a broader industry trend of private-equity firms courting defense and critical-infrastructure opportunities.