The $96 million project would provide classified workspace for an Air Force cyber warfare squadron, as Port San Antonio continues promoting an alternative location for the broader cyber campus.
The U.S. Army Corps of Engineers is moving forward with plans for a new cyber operations center at Joint Base San Antonio-Lackland, adding another piece to a proposed multibillion-dollar overhaul of aging Air Force cyber facilities on Security Hill.
The planned roughly 42,000-square-foot facility would support approximately 270 personnel in the 91st Cyberspace Operations Squadron, known as the “Demon Chasers.” Plans call for classified work areas, communications infrastructure and backup power. The project carries a $96 million programmed amount, but that is not an awarded construction contract.
The Corps hosted an industry day at Lackland on Oct. 6. It is pursuing a competitive selection in which prospective teams first submit written qualifications, and finalists are invited to pitch their approach. Experience, technical capability and confidence in delivery will matter, rather than price alone.
Air Force cites power, cooling and space problems
Air Force budget documents say the 91st shares older facilities with parts of the 16th Air Force and 67th Cyberspace Wing. The service says its facilities have inadequate space, electrical power and cooling capacity for modern cyber missions. Fluctuating power and inadequate cooling pose risks to mission equipment, while limited available installation space complicates relocation.
The 91st conducts offensive cyberspace operations in support of U.S. Cyber Command and combatant commanders. Its classified computing, communications and security needs are different from those of a conventional headquarters office.
A larger Lackland cyber campus
The 91st center is among five planned facilities in a proposed Consolidated Cyber Campus. Other projects include a headquarters and operations center for 16th Air Force, facilities for the 67th and 688th Cyberspace Wings and a Cyber Training Center.
The largest proposed component, the Multi-Domain Cyber and Intel Operations Center, is planned at about 600,000 square feet, with space for roughly 3,500 workers. The Corps has described a $986 million affordability ceiling for that project, including specialized computing and data-center infrastructure.
Those dollar figures should not be confused with completed contracts or final taxpayer costs. The acquisition process contemplates an initial design and preconstruction phase, followed by negotiated construction work subject to approvals and funding.
Why the unconventional contracting approach matters
The Corps is using progressive design-build, a model in which the government selects a team earlier in the design process and develops scope, cost and schedule with that team. It also intends to use Other Transaction Authority, an alternative to conventional Federal Acquisition Regulation contracting.
Alternative agreements allow greater negotiation flexibility but do not necessarily carry every standard procurement safeguard. They can also make direct comparisons with traditionally bid projects more difficult. Conversely, supporters argue they can reduce delays and give the government a closer working relationship with contractors on complex technical facilities.
Congress established specific authority for military-construction other transactions under 10 U.S.C. § 2808a in 2025. That law requires advance notice to congressional defense committees and periodic reporting on project costs, schedules, efficiency, risks and results. The approach therefore changes the oversight framework rather than eliminating oversight altogether.
Port San Antonio proposes an alternative
At the same time, Port San Antonio is promoting an off-base cyber campus at the former Kelly Air Force Base, several miles from Security Hill. Port officials contend an intergovernmental support agreement could deliver facilities more quickly and save substantial amounts compared with conventional military construction.
Port leaders have projected savings exceeding $1 billion, but those are estimates advanced by an interested project sponsor, not documented savings from a completed federal construction project or a final comparative cost assessment. Relocating military cyber operations would also represent a major economic development opportunity for the publicly owned Port campus.
The proposal has attracted bipartisan political interest. In 2024, Republican Sen. John Cornyn and Rep. Pat Fallon joined Democratic Reps. Joaquin Castro and Henry Cuellar in asking the Air Force to continue evaluating the idea. Their support is evidence of interest in assessing the alternative, not proof that its claimed savings would materialize.
The Port has invested in preliminary design work and signed an agreement with the Air Force to explore potential off-base solutions. That exploratory agreement does not commit the military to relocating its cyber headquarters or awarding the Port a construction project.
The decision still ahead
The Army Corps’ solicitations demonstrate tangible progress toward construction on Lackland, while the Port’s alternative continues through conceptual planning and advocacy. Neither the full scope of future on-base work nor a final government decision on the Port alternative should be treated as settled.
Air Force documents substantiate the core operational problem: current cyber facilities face crowding, power and cooling limitations. The unresolved taxpayer question is whether rebuilding at Security Hill, developing a Port San Antonio campus or combining elements of both offers the best long-term value, security and mission performance.
Illustrative image: computer infrastructure, not the proposed Lackland facility. Photo: Tyler / Unsplash.
Documents and further reading
10 U.S.C. § 2808a; Bipartisan congressional letter on Port San Antonio; Federal contracting notices (SAM.gov).