Skip to content
Friday, October 23, 2026 · Today’s edition, 6:30 a.m. ETFri, Oct 23 · 6:30 a.m. editionSign inMy Desk 0EditionsSign in

Federal courts open colocation rebid with Washington in the requirements

The contract runs to 2029, but the RFI asks bidders to run the two data centers past 2032, gives Digital Realty and Csquare no automatic renewal, and prefers one site near Washington, D.C.

At a glance

  1. Today the split runs along the Mississippi River: circuit headquarters east of it — Boston, New York, Philadelphia, Richmond, Cincinnati, and Atlanta — take Ashburn as their primary data center, while western circuits in New Orleans, Chicago, St. Louis, Denver, and San Francisco route to San Diego.
  2. During the contract, the AOUSC expects to keep moving workloads to the cloud, primarily through Microsoft Azure and Amazon Web Services, which makes the two colocation facilities less a growth mandate than a redundancy floor the judiciary intends to hold while its compute drifts upward.
  3. For bidders, the prize is a decade of sticky federal tenancy that begins only after the current deal expires in July 2029, a patient-money contract built for infrastructure owners with long horizons.

The Administrative Office of the U.S. Courts has published a request for information covering colocation services across two geographically diverse data centers, a process that puts the federal judiciary's existing arrangement with Digital Realty and Csquare in play nearly three years before the current contract runs out.

The agency now operates out of a Digital Realty data center in El Segundo, California, and a Csquare facility in Ashburn, Virginia, under a contract managed by an undisclosed third-party vendor; the deal expires in July 2029, and the RFI asks for a contractor to keep both facilities fully operational under a new contract running until at least July 2032. It is also evaluating whether new data center locations should be considered, and on that point it is explicit: "Please note that AOUSC prefers one location to be near Washington, DC," the RFI states.

Today the split runs along the Mississippi River: circuit headquarters east of it — Boston, New York, Philadelphia, Richmond, Cincinnati, and Atlanta — take Ashburn as their primary data center, while western circuits in New Orleans, Chicago, St. Louis, Denver, and San Francisco route to San Diego. Bidders will want to reconcile one discrepancy, because the routing description places the western service point in San Diego while the Digital Realty facility the agency names sits in El Segundo, a gap that will help determine whether the 2029 rebid is a renewal or a relocation.

During the contract, the AOUSC expects to keep moving workloads to the cloud, primarily through Microsoft Azure and Amazon Web Services, which makes the two colocation facilities less a growth mandate than a redundancy floor the judiciary intends to hold while its compute drifts upward. This publication has argued before that hyperscaler-anchored demand clears as infrastructure while everything else fights for capital; the courts' procurement is the federal version of that split, with Azure and AWS taking the growth and colocation absorbing the residual.

For bidders, the prize is a decade of sticky federal tenancy that begins only after the current deal expires in July 2029, a patient-money contract built for infrastructure owners with long horizons. For Digital Realty and Csquare, the sharper issue is that incumbency carries no presumption of renewal. The RFI's willingness to consider new locations, set against the stated preference for a Washington-area site, means the agency's own language has priced displacement as a live option, and a decade is long enough for a federal tenant to pick up and move.

Reported by the Data centers & fiber desk from Data Center Dynamics. Published . Corrections

Related

Infrastructure

Umatilla declares emergency over $5B data center permit freeze

The city resolution says the block could delay more than $5 billion in investment and set projects back two years.

Infrastructure

Trump urges data center developers to pay residents a dividend

The Truth Social post backs cash payments; recent offers include $10,000 each in a Pennsylvania township and ten years of credits in a Kansas town.

Infrastructure

Amazon plans €16bn German investment for 2027, including €4.8bn for AWS data centers

The report does not say how the remaining €11.2bn splits between Amazon Leo, Prime Video and logistics.

Infrastructure

O3 Group plans Benghazi data center for March 2027

The Libyan operator gave no capital figure, capacity or named customer; international connectivity would use the Medusa cable.

Infrastructure

Meta has converted Ohio Facebook site into first phase of AI campus

The New Albany site is planned to scale to a gigawatt with roughly one million GPUs; it has already trained Meta's Muse models.

Private Infrastructure Dailyfrom Private Wealth Daily

Energy transition, digital infrastructure and core-plus funds. Weekdays at 7:25 a.m. ET.

Free. Weekday mornings. Unsubscribe from any edition in one click.

From other sections