House NDAA Provision Would Ban Chinese Equipment in Private Data Centers on DoD Land

A House-passed amendment to the fiscal year 2027 National Defense Authorization Act would bar the Department of Defense from leasing land to private data center operators unless they exclude components from China, Russia, Iran, and North Korea, directly affecting Carlyle Group's Fort Bliss project and CyrusOne's Dugway Proving Ground project. Army officials warn the provision creates an 'unworkable standard' that could deter $1.3 billion in private capital, while HASC Chairman Mike Rogers opposed the measure, arguing the U.S. needs the best data infrastructure for military advantage.

House NDAA Provision Would Ban Chinese Equipment in Private Data Centers on DoD Land - Rep. Cory Mills R-Fla. amendment bars DoD from leasing land for private data centers unless operators exclude components from China, Russia, Iran, and North Korea 1 https://www.datacenterdynamics.com/en/news/defense-authorization-bill-provision-could-ban-private-data-centers-on-us-dod-land-from-using-chinese-equipment/ - Restriction covers printed circuit boards, advanced semiconductors, chipsets, and other components deemed national security risks by DoD 2 https://federalnewsnetwork.com/congress/2026/07/congress-ramps-up-scrutiny-of-pentagon-ai-data-center-plans/ - Carlyle's 1,384-acre Fort Bliss project target 2027 and CyrusOne's 1,201-acre Dugway Proving Ground project target 2029 are directly affected 3 https://www.eenews.net/articles/the-pentagon-wants-to-build-data-centers-congress-would-like-a-word/ - Army officials warn the provision creates an 'unworkable standard' that could drive away $1.3 billion in private capital 2 https://federalnewsnetwork.com/congress/2026/07/congress-ramps-up-scrutiny-of-pentagon-ai-data-center-plans/ - HASC Chairman Mike Rogers R-Ala. opposed the measure, arguing the U.S. needs the best data infrastructure for military advantage 2 https://federalnewsnetwork.com/congress/2026/07/congress-ramps-up-scrutiny-of-pentagon-ai-data-center-plans/ An amendment in the House-passed fiscal year 2027 National Defense Authorization Act would bar the Department of Defense from leasing land to private companies for data center construction unless those companies agree not to install equipment containing components manufactured in China, Russia, Iran, or North Korea 1 . The provision, introduced by Rep. Cory Mills R-Fla. , targets printed circuit boards, advanced semiconductors, chipsets, and other components that the Pentagon deems national security risks . 2 https://federalnewsnetwork.com/congress/2026/07/congress-ramps-up-scrutiny-of-pentagon-ai-data-center-plans/ The restriction directly affects at least two major projects already in motion. In March, the Army announced that Carlyle Group would build a data center on 1,384 acres at Fort Bliss, Texas, with an initial operating capability target of fiscal year 2027, while CyrusOne — jointly owned by KKR and BlackRock — would develop a facility on 1,201 acres at Dugway Proving Ground, Utah, targeting completion by 2029 3 . The Air Force has also opened unused land at five additional military installations to private data center developers . 2 https://federalnewsnetwork.com/congress/2026/07/congress-ramps-up-scrutiny-of-pentagon-ai-data-center-plans/ The provision passed the House as part of the broader FY2027 NDAA but faces opposition from both the Army and the chairman of the House Armed Services Committee. Army officials have called the amendment an 'unworkable standard' that creates a 'federal land penalty,' warning it could deter partners and put $1.3 billion in private capital at risk 2 . The bill must still be reconciled with the Senate's version of the NDAA before becoming law. The Provision Mills' amendment prohibits companies from 'installing or operating data facility equipment' that contains certain components manufactured in adversary nations. The ban covers printed circuit boards, advanced semiconductors, chipsets, and any other components the Defense Department designates as national security risks 1 https://www.datacenterdynamics.com/en/news/defense-authorization-bill-provision-could-ban-private-data-centers-on-us-dod-land-from-using-chinese-equipment/ 2 . The provision applies specifically to facilities built on DoD-leased land, meaning identical data centers built on private land adjacent to a military base would not face the same restrictions. Mills framed the measure as a national security necessity. 'Honored to pass this amendment to protect our military installations from Chinese components being used in data centers on our installations,' the Florida Republican said 2 . Affected Projects The Pentagon's push to lease unused military land for private AI data centers began in January, when the Army solicited pitches for facilities at Fort Hood now Fort Cavazos , Fort Bragg now Fort Liberty , Fort Bliss, and Dugway Proving Ground 1 . By March, two projects were selected: Carlyle Group at Fort Bliss and CyrusOne at Dugway . 3 https://www.eenews.net/articles/the-pentagon-wants-to-build-data-centers-congress-would-like-a-word/ The Fort Bliss project spans 1,384 acres and is targeting initial operations in fiscal year 2027. The Dugway Proving Ground project covers 1,201 acres with a 2029 target 3 . The Fort Bliss facility alone could require more electricity than all 460,000 of El Paso's residential customers combined, according to local reporting . 3 https://www.eenews.net/articles/the-pentagon-wants-to-build-data-centers-congress-would-like-a-word/ The Army has emphasized that the projects involve no upfront taxpayer cost, with developers responsible for comprehensive power and water infrastructure 3 . But the Mills amendment could fundamentally alter the economics of these builds by restricting supply chains for critical components. Opposition From the Pentagon and HASC Leadership Army officials have pushed back hard against the provision, arguing it would impose requirements on DoD-land data centers that do not apply to identical facilities built on private land — creating what they call a 'federal land penalty' 2 . The Army warned that the standard is 'unworkable' and could drive away the private capital needed to build out military AI infrastructure . 2 https://federalnewsnetwork.com/congress/2026/07/congress-ramps-up-scrutiny-of-pentagon-ai-data-center-plans/ HASC Chairman Mike Rogers R-Ala. also opposed the measure. 'The nation with the best data infrastructure will possess a decisive advantage in the next warfare,' Rogers argued, suggesting the restriction could hamper the Pentagon's ability to attract private-sector partners 2 . The provision is not the only congressional pushback against DoD data center plans. Rep. Rashida Tlaib D-Mich. introduced separate legislation to ban AI data centers on federal lands entirely, citing concerns about community health and utility costs 2 . House appropriators have also directed the Pentagon to assess energy demands, water impacts, security implications, and community effects before construction begins . 3 https://www.eenews.net/articles/the-pentagon-wants-to-build-data-centers-congress-would-like-a-word/ What's Next The FY2027 NDAA passed the House with the Mills amendment intact, but the Senate Armed Services Committee's version of the bill must still be finalized and reconciled in conference. Whether the Chinese equipment restriction survives the conference process will depend on Senate appetite for the provision and Pentagon lobbying against it. House Defense Appropriations Chairman Ken Calvert R-Calif. has separately called for pre-construction briefings to affected communities 3 , and Rep. John Garamendi D-Calif. proposed amendments requiring comprehensive impact studies before any DoD-land data center proceeds . The combination of supply chain restrictions, environmental review requirements, and community notification mandates could significantly slow the Pentagon's data center leasing timeline even if the Mills amendment is ultimately softened. 3 https://www.eenews.net/articles/the-pentagon-wants-to-build-data-centers-congress-would-like-a-word/ Companies mentioned Further sources The stories that matter, in one email. Free — unsubscribe anytime.