In a bold move to modernize its vast infrastructure, the U.S. Army has turned to some of Wall Street’s most influential private equity firms, seeking innovative ways to finance a sweeping $150 billion overhaul. Last week, Army Secretary Daniel Driscoll and Treasury Secretary Scott Bessent convened a high-profile forum in New York, gathering representatives from more than 15 top buyout giants—including Apollo, Carlyle, KKR, and Cerberus—to discuss what Driscoll called “meaty” strategic projects for the Army’s future.
According to Financial Times, the October 14, 2025, meeting marks an unprecedented effort to involve private capital at the heart of U.S. national security. Driscoll, a former investment banker with a penchant for bold ideas, opened the session by laying out the Army’s underutilized assets. “Hey, here are all the assets we have in our arsenals and our depots that we are underutilizing . . . What are those types of deals where we can work with you and invite you in?” he told investors, as reported by Financial Times.
The Army’s wish list is ambitious. Driscoll is soliciting proposals for projects ranging from cutting-edge data centers to rare earth processing facilities—both critical to the Army’s operational and technological edge. In a nod to creative financing, the Army is even considering land swaps, trading federal property for computing power or rare earth output, as noted by attendees who spoke to Financial Times.
“We actually just want meaty projects,” Driscoll emphasized. The message was clear: the Army is not interested in incremental tweaks, but in transformative ideas that can propel its infrastructure into the modern era. The forum explored a variety of financing mechanisms, from refurbishing real estate and raising capital against military property to innovative supply chain and capital expenditure solutions.
One attendee described the breadth of the discussion: “The discussion ran the gamut, from finding financing to refurbish some real estate, or even raise financing against the real estate. There were also discussions on different financing tools for the army’s supply chain and overall capex.” The Army’s openness to new models reflects the urgency of the task and the scale of the resources required.
This initiative is a cornerstone of the Trump administration’s broader strategy to harness the power of America’s $13 trillion private capital sector for national security. As GZERO reported, the Army’s outreach to private equity is part of a broader push to integrate private investment with defense priorities—a move that’s both ambitious and, until now, largely untested at this scale.
Driscoll’s approach is unmistakably influenced by Silicon Valley’s ethos of disruption and rapid innovation. “I can say unequivocally that the Silicon Valley approach is absolutely ideal for the army,” he said, signaling a desire to import tech-sector agility into the traditionally bureaucratic world of military procurement and infrastructure management. The Army Transformation Initiative, championed by Driscoll, aims to accelerate the adoption of new technologies and business models throughout the service.
What does this mean in practice? According to sources present at the meeting, private equity firms were encouraged to pitch “clever financing models or unique financing models” that could unlock value from the Army’s vast, but often overlooked, real estate and logistical assets. Some of the most promising ideas involved building and operating data centers directly on military bases, with private firms financing construction in exchange for long-term government leases. Such arrangements could speed up deployment, reduce upfront government spending, and give the Army access to state-of-the-art digital infrastructure.
Rare earth processing—a sector dominated by foreign suppliers, particularly China—was another focal point. The Army is exploring whether private capital could help establish domestic processing capacity, shoring up supply chains for critical materials used in everything from missile guidance systems to electric vehicles. In exchange, the government might offer land or other incentives, ensuring both security of supply and a return on investment for private partners.
The stakes are high. The Army’s infrastructure, much of it dating back to the Cold War or earlier, is in dire need of modernization. Outdated facilities, inefficient logistics, and aging technology all pose risks to military readiness and national security. Yet with federal budgets under pressure and competing priorities in Washington, finding $150 billion in public funds is no easy feat.
That’s where private equity comes in. By tapping into the vast pools of capital managed by firms like Apollo, Carlyle, KKR, and Cerberus, the Army hopes to accelerate its overhaul without waiting for congressional appropriations. The model is not without precedent—public-private partnerships have long been used in sectors like transportation and energy—but the scale and strategic significance of this effort are unprecedented.
Driscoll and Bessent’s outreach is also notable for its timing. With the Trump administration doubling down on national security and technological self-sufficiency, the Army’s initiative aligns with broader White House efforts to bring private capital into the fold. The administration’s willingness to experiment with new financing structures reflects both necessity and a recognition that traditional government procurement processes are often too slow and cumbersome for the challenges at hand.
Of course, the plan is not without its skeptics. Some defense analysts warn that involving private equity in military infrastructure could introduce new risks, from conflicts of interest to questions about control and oversight. Others point to the need for robust safeguards to ensure that national security is not compromised in pursuit of financial returns. Still, Driscoll appears undeterred, betting that the benefits of speed, innovation, and access to capital outweigh the potential pitfalls.
The next steps are already in motion. Driscoll told Financial Times that the Army anticipates receiving detailed investment proposals in the coming weeks and will conduct due diligence before reconvening with investors in New York. “His goal is to have several agreements finalized by year’s end,” Financial Times reported.
This timeline reflects both the urgency of the Army’s needs and the competitive nature of the process. With Wall Street’s top firms vying for a role in reshaping the future of U.S. military infrastructure, the coming months could see a flurry of announcements—and, perhaps, the start of a new era in public-private collaboration for national defense.
As the Army moves forward with its ambitious overhaul, all eyes will be on how these partnerships unfold. The outcome could set a precedent not only for the military, but for how government and private capital work together to meet the nation’s most pressing challenges.
