A gas turbine engine includes a plurality of rotating components housed within a compressor section and a turbine section. A tap connects to the compressor section. A heat exchanger connects downstream of the tap. A cooling compressor connects downstream of the heat exchanger, and the cooling compressor connects to deliver air to at least one of the rotating components. A core housing has an outer peripheral surface and a fan housing defines an inner peripheral surface. At least one bifurcation duct extends between the outer peripheral surface to the inner peripheral surface. The heat exchanger is disposed within the at least one bifurcation duct.