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GovWin IQ Report: Federal Data Center Optimization Progress, FY 2022

A report from GovWin IQ and authored by Angie Petty, Sr. Principal Analyst, gave a progress update on Federal efforts to optimize and consolidate data centers, as required in 2016 by the OMB’s Data Center Optimization Initiative (DCOI). The GovWin report is accessible to the public and does not require a GovWin subscription (Federal Data Center Optimization Progress, FY 2022 | GovWin IQ).

As noted in the report, the 4th quarter data posted in Dec. 2022 may be the last set of DCOI data posted on the Federal IT Dashboard. OMB’s requirements for DCOI were set to expire on Sept. 30, 2022. The IT Dashboard shows cumulative cost savings from DCOI of $4.9B between FY 2016 and FY 2022 as a result of data center optimization and closures.

According to the report:

Although the DCOI effort is essentially complete from a policy perspective, federal contractors should continue to see opportunities to assist agencies with data center optimization efforts. Opportunities still exist in the areas of application rationalization, infrastructure modernization, cloud migration, and shared service migration.

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