Last September, federal CIO Vivek Kundra argued that the US government cannot continue to invest in its own data centers and so plans to set up its own federal cloud computing services ( see: Apps.gov). At the same time, Google announced plans to make a government cloud to provide government agencies with access to Google services such as Google Apps (see: Google for Government). Currently the District of Columbia is using Google Apps and the city of Los Angeles decided last December to migrate all its users to Google Apps (see: Los Angeles Goes Google).
For the latest on government cloud computing trends, see: Federal Cloud Blog