Intel has stepped up its efforts to win business with the US federal government by forming a subsidiary that will focus entirely on work in the federal sector.

Government contracting is a big opportunity for the private sector, especially for IT companies. Collectively, the federal government is one of the world's largest end users of IT services and data centers. According to the most recent estimates, its agencies operate more than 2,000 data centers ÔÇô a number that is expected to be revised up.

Intel Federal will start its work with a focus on High Performance Computing together with the Department of Energy. The company expects for the unit to be working with all branches of the government eventually.

Kirk Skaugen, VP and general manager of Intel's Datacenter and Connected Systems group, said the company was aiming to increase current HPC performance levels by 100 times by 2018 ÔÇô an effort that would require a collaboration between private and public sectors.

"We look forward to collaborating more closely with the U.S. government on future supercomputing challenges," he said.

"The creation of Intel Federal demonstrates the strategic importance of these programs and will give us the ability to establish and maintain the unique processes, procedures and controls needed to develop and manage programs with the government."

Intel appointed Dave Patterson, previously president and CEO of Optelecom-NKF, to lead Intel Federal as the company's president.

Patterson comes to Intel Federal with experience working with the public sector. Prior to taking the helm at Optelecom-NKF, a network video equipment vendor, Patterson served as president and CEO of Siemens's government services subsidiary.

Intel Federal's first offices will be in Oregon, California and Washington, D.C.