The U.S. federal government is the largest buyer of information technology in the world and spends approximately $80 billion annually. However, plans are in motion to shut down 40 percent - approximately 800 - of its 2,000 data centers in an effort to become more sustainable and save billions of dollars.
In an interview with the New York Times, federal chief information officer Vivek Kundra, said the strategy is a move to adopt more efficient technology practices, which includes the use of cloud computing. Kundra estimates the cloud could save the government an additional $5 billion a year.
"In an era of massive deficits, the federal government has to figure out ways to get more efficient," Darrell West, a government and technology expert at the Brookings Institution, told the New York Times. "The data center consolidation is part of that process."
Although the United States is hoping to curb some of its IT spending, worldwide technology spending is expected to reach nearly $3.7 trillion this year, which is an increase of 7.1 percent from last year.