The U.S. General Services Administration (GSA) has formalized a OneGov agreement with Snowflake to open federal agencies to the AI Data Cloud company's data platform, the GSA announced on Thursday. The deal is presented as a measure to help federal workers confront entrenched data silos and to advance broader IT modernization efforts.
GSA Administrator Edward C. Forst said the agreement fits within President Trump’s emphasis on technological innovation by streamlining agency access to a shared data platform. Forst highlighted that enhanced cross-agency data capabilities could accelerate the creation of AI tools tailored to the missions of individual agencies.
Under the terms of the agreement, all new U.S. Snowflake customers will be eligible for a 20% discount on compute services and a 26.67% discount on storage. The contract also allows agencies to earn additional discounts on compute costs - up to 50% - as their usage grows.
The one-year agreement is available through September 30, 2027, and is offered via GSA’s Multiple Award Schedule within the OneGov framework.
Snowflake CEO Sridhar Ramaswamy said the company’s participation in GSA’s OneGov program signals a commitment to supporting public servants. He stated that the arrangement removes procurement barriers, enabling agencies to concentrate on applying their data to decision-making.
The agreement frames federal data sharing and AI tool development as priorities tied to both operational efficiency and modernization, while laying out specific pricing incentives intended to encourage adoption among new Snowflake customers in the U.S. The structure ties deeper discounts to usage thresholds, indicating a pricing model that rewards higher platform utilization.
Context and next steps
The OneGov agreement opens a procurement path for agencies seeking a shared cloud-based data platform and establishes defined discount levels for eligible new Snowflake customers. The practical effects on agency deployments, adoption rates and AI development will depend on agencies' procurement decisions and platform uptake within the contract period through September 30, 2027.