To optimize Federal data center usage and efficiency.

Summary: Data Center Optimization Act - Directs the chief information officer of the Office of Management and Budget (OMB) (Federal CIO) to: (1) develop and implement an initiative to optimize the usage and efficiency of federal data centers, (2) submit to Congress a consolidated plan for implementation of the initiative by each agency, and (3) submit a consolidated report each year that assesses agency progress in carrying out the initiative and that updates such plan.

Requires agency implementation plans to: (1) include descriptions of how agencies will use reductions in floor space, energy use, infrastructure, equipment, applications, personnel, increases in multi-organizational use, and other appropriate methods to meet initiative requirements; and (2) be included in, and consistent with, the President's annual budget submission materials.

Requires each agency included in the initiative to: (1) meet or exceed 75% average server utilization in agency data centers by 2015; (2) achieve an average power utilization effectiveness for its data centers of 1.2 or less by 2015; (3) establish methods to obtain accurate data to measure power utilization effectiveness; (4) use desktop virtualization with existing workstations to the extent practicable; and (5) give high priority to replacement of data center servers and other information technology equipment with more efficient equipment, using a baseline including the physical to virtual consolidation ratio and other criteria developed by the Federal CIO. Authorizes the establishment at the Department of Defense (DOD) of a pilot program aimed at researching innovation ways to achieve full metering.

Requires such agencies to: (1) track costs and savings resulting from implementation of the initiative and report on those costs and savings annually to the Federal CIO, (2) determine net costs and net savings from data consolidation on an annual basis, (3) use the most cost effective measures to implement the initiative, (4) use resulting savings to offset implementation costs and to further enhance information technology capabilities and services, and (5) report to the Federal CIO annually on the initiative's implementation.

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Data Center 
Optimization Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Purpose.
Sec. 3. Definitions.
Sec. 4. Federal Data Center Optimization Initiative.
Sec. 5. Performance requirements related to data center consolidation.
Sec. 6. Disposition of savings from data consolidation.
Sec. 7. Reporting requirements to Congress and the Federal Chief 
                            Information Officer.
Sec. 8. Agencies included in the Federal Data Center Optimization 
                            Initiative.

SEC. 2. PURPOSE.

    The purpose of this Act is to optimize Federal data center usage 
and efficiency.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Federal data center optimization initiative.--The term 
        ``Federal Data Center Optimization Initiative'' means the 
        initiative developed and implemented pursuant to section 4.
            (2) Covered agency.--The term ``covered agency'' means any 
        agency included in the Federal Data Center Optimization 
        Initiative pursuant to section 8.
            (3) Federal chief information officer.--The term ``Federal 
        Chief Information Officer'' means the chief information officer 
        of the Office of Management and Budget.
            (4) Data center.--The term ``data center'' means any room 
        that is devoted to data processing servers, including server 
        closets (typically less than 200 square feet) and server rooms 
        (typically less than 500 square feet), within a conventional 
        building, and larger spaces in any building dedicated to 
        housing servers, storage devices, and network equipment, but 
        the term does not include facilities that are exclusively 
        devoted to communications and network equipment (such as 
        telephone exchanges) and telecommunications rooms and closets.
            (5) Desktop virtualization.--The term ``desktop 
        virtualization'' means any technology that creates a virtual 
        version of an information technology device or resource and is 
        used to separate a computer desktop environment from the 
        physical computer.
            (6) Virtualization.--The term ``virtualization'' means the 
        simulation of the software or hardware, or both, upon which 
        other software runs which allows servers to be consolidated in 
        ratios of 5:1 up to 25:1. The use of virtualization technology 
        is both an instrumental and necessary component to achieve 
        increases in server utilization rates. This simulated 
        environment is called a virtual machine (VM).
            (7) Federal data center.--The term ``Federal data center'' 
        means any data center of a covered agency used or operated by a 
        covered agency, by a contractor of a covered agency, or by 
        another organization on behalf of a covered agency.
            (8) Power utilization effectiveness.--The term ``power 
        utilization effectiveness'' means the ratio obtained by 
        dividing the total amount of electricity and other power 
        consumed in running a data center by the power consumed by the 
        information and communications technology in the data center.
            (9) Server utilization.--The term ``server utilization'' 
        refers to the activity level of a server relative to its 
        maximum activity level during peek hours of operation, 
        expressed as a percentage.
            (10) Cloud computing.--The term ``cloud computing'', as 
        defined by National Institute of Standards and Technology, 
        means a model for enabling ubiquitous, convenient, on-demand 
        network access to a shared pool of configurable computing 
        resources (such as networks, servers, storage, applications, 
        and services) that can be rapidly provisioned and released with 
        minimal management effort or service provider interaction. The 
        model is composed of the following:
                    (A) Five essential characteristics, which are on-
                demand service, broad network access, resource pooling, 
                rapid elasticity, and measured service.
                    (B) Three service models, which are software as a 
                service, platform as a service, and infrastructure as a 
                service.
                    (C) Four deployment models, which are private 
                cloud, community cloud, public cloud, and hybrid cloud.

SEC. 4. FEDERAL DATA CENTER OPTIMIZATION INITIATIVE.

    (a) Requirement for Initiative.--The Federal Chief Information 
Officer, in consultation with the chief information officers of covered 
agencies, shall develop and implement an initiative to optimize the 
usage and efficiency of Federal data centers by meeting the 
requirements of this Act and taking additional measures, as 
appropriate.
    (b) Requirement for Plan.--Within 6 months after the date of the 
enactment of this Act, the Federal Chief Information Officer, in 
consultation with the chief information officers of covered agencies, 
shall develop and submit to Congress a consolidated plan for 
implementation of the initiative by each agency. The agency 
consolidation plans must include descriptions of how agencies will use 
reductions in floor space, energy use, infrastructure, equipment, 
applications, personnel, increases in multiorganizational use, and 
other appropriate methods to meet the requirements of the initiative. 
The agency consolidation plans must also be included in, and consistent 
with, the President's annual budget submission materials, including the 
detailed budget justifications and appropriations estimates.

SEC. 5. PERFORMANCE REQUIREMENTS RELATED TO DATA CENTER CONSOLIDATION.

    (a) Server Utilization.--
            (1) 75 percent.--Each covered agency shall meet or exceed 
        75 percent average server utilization in agency data centers by 
        2015.
            (2) Methods to achieve requirement.--Each covered agency 
        shall use the following methods to meet the requirement in 
        paragraph (1):
                    (A) The closing of existing data centers that have 
                an average server utilization of under 65 percent. If 
                the agency fails to close data centers with a 
                utilization of under 65 percent, the agency must 
                provide a detailed explanation as to why this data 
                center should remain in use as part of the submitted 
                plan. The Federal Chief Information Officer will 
                include an assessment of the agency explanation in the 
                annual report to Congress.
                    (B) The use of virtualization technology to achieve 
                the consolidation of services within existing data 
                centers to increase server utilization rates.
                    (C) Shifting to a ``cloud first'' policy, under 
                which agencies shall use one or more of the following:
                            (i) Use commercial cloud technologies where 
                        feasible and cost effective by migrating agency 
                        data and government-provided services from 
                        agency owned and operated data centers to cloud 
                        computing services generally available with the 
                        private sector.
                            (ii) Launch private government cloud 
                        services within an agency, or share resources 
                        across several agencies where more feasible and 
                        cost-effective in comparison to use of public 
                        cloud services.
                            (iii) Use regional clouds with State and 
                        local governments where appropriate.
                    (D) The consolidation of data centers across 
                agencies.
                    (E) Other methods identified by chief information 
                offices of the agencies and the Federal Chief 
                Information Officer.
    (b) Power Utilization Effectiveness.--Each covered agency shall 
achieve an average power utilization effectiveness for its data centers 
of 1.2 or less by 2015.
    (c) Power Metering.--
            (1) This Act authorizes a pilot program be established at 
        the Department of Defense aimed at researching innovative ways 
        to achieve full metering.
            (2) The covered agency must establish other methods to 
        obtain accurate data to measure power utilization effectiveness 
        subject to the approval of the Federal Chief Information 
        Officer.
    (d) Desktop Virtualization.--Each covered agency shall use desktop 
virtualization with existing workstations to the extent that is 
practicable, to save equipment replacement costs and improve the 
security posture of enpoint devices by migrating end user data from the 
device into the private cloud of the agency.
    (e) Efficient Information Technology.--Each covered agency shall 
give high priority to replacement of data center servers and other 
information technology equipment with more efficient equipment, using a 
baseline including the physical to virtual consolidation ratio and 
other criteria developed by the Federal Chief Information Officer in 
consultation with agency chief information officers.

SEC. 6. DISPOSITION OF SAVINGS FROM DATA CONSOLIDATION.

    (a) Requirement To Track Costs.--
            (1) In general.--Each covered agency shall track costs 
        resulting from implementation of the Federal Data Center 
        Optimization Initiative within the agency and submit a report 
        on those costs annually to the Federal Chief Information 
        Officer. Covered agencies shall determine the net costs from 
        data consolidation on an annual basis.
            (2) Factors.--In calculating net costs each year under 
        paragraph (1), a covered agency shall use the following 
        factors:
                    (A) Energy costs.
                    (B) Personnel costs.
                    (C) Real Estate costs.
                    (D) Capital expense costs.
                    (E) Operating system, database, and other software 
                license expense costs.
                    (F) Other appropriate costs, as determined by the 
                agency in consultation with the Federal Chief 
                Information Officer.
    (b) Requirement To Track Savings.--
            (1) In general.--Each covered agency shall track savings 
        resulting from implementation of the Federal Data Center 
        Optimization Initiative within the agency and submit a report 
        on those savings annually to the Federal Chief Information 
        Officer. Covered agencies shall determine the net savings from 
        data consolidation on an annual basis.
            (2) Factors.--In calculating net savings each year under 
        paragraph (1), a covered agency shall use the following 
        factors:
                    (A) Energy savings.
                    (B) Personnel savings.
                    (C) Real Estate savings.
                    (D) Capital expense savings.
                    (E) Operating system, database and other software 
                license expense savings.
                    (F) Other appropriate savings, as determined by the 
                agency in consultation with the Federal Chief 
                Information Officer.
    (c) Cost Effective Measures.--Covered agencies shall use the most 
cost effective measures to implement the Federal Data Center 
Optimization Initiative.
    (d) Use of Savings.--Any savings resulting from implementation of 
the Federal Data Center Optimization Initiative within a covered agency 
shall be used for the following purposes:
            (1) To offset the costs of implementing the Initiative 
        within the agency.
            (2) To further enhance information technology capabilities 
        and services within the agency.
    (e) Comptroller General Report.--Not later than three months after 
the date of the enactment of this Act, the Comptroller General of the 
United States shall examine methods for calculating savings from the 
Initiative and using them for the purposes identified in subsection 
(c), including establishment and use of a special revolving fund that 
supports data centers and server optimization, and shall submit to the 
Federal Chief Information Officer and Congress a report on the 
Comptroller General's findings and recommendations. The Federal Chief 
Information Officer shall take those findings and recommendations into 
account in developing the plan under section 4(b).

SEC. 7. REPORTING REQUIREMENTS TO CONGRESS AND THE FEDERAL CHIEF 
              INFORMATION OFFICER.

    (a) Agency Requirement To Report to CIO.--Each year, each covered 
agency shall submit to the Federal Chief Information Officer a report 
on the implementation of the Federal Data Center Consolidation 
Initiative. The report shall include an update of the agency's plan for 
implementing the Initiative.
    (b) Federal Chief Information Officer Requirement To Report to 
Congress.--Each year, the Federal Chief Information Officer shall 
submit to the Committee on Science, Space, and Technology and the 
Committee on Oversight and Government Reform of the House of 
Representatives and the Committee on Homeland Security and Governmental 
Affairs of the Senate a consolidated report that assesses agency 
progress in carrying out the Federal Data Center Consolidation 
Initiative and updates the plan under section 4(b). The report may be 
included as part of the annual report required under section 3606 of 
title 44, United States Code. This report may also be included in the 
agency budget submissions to the Office of Management and Budget.

SEC. 8. AGENCIES INCLUDED IN THE FEDERAL DATA CENTER OPTIMIZATION 
              INITIATIVE.

    The following agencies shall be covered by the Federal Data Center 
Optimization Initiative:
            (1) Current agencies.--Each agency described in section 
        901(b) of title 31, United States Code.
            (2) Additional agencies.--Such other additional agencies as 
        the Federal Chief Information Officer determines appropriate, 
        after examining whether additional agencies should be covered 
        by the Initiative and including the results of such examination 
        in the plan under section 4(b) and updates under section 7.