Fed-REACT: Federated Representation Learning for Heterogeneous and Evolving Data

Motivated by the high resource costs and privacy concerns associated with centralized machine learning, federated learning (FL) has emerged as an efficient alternative that enables clients to collaboratively train a global model while keeping their data local. However, in real-world deployments, client data distributions often evolve over time and differ significantly across clients, introducing heterogeneity that degrades the performance of standard FL algorithms. In this work, we introduce Fed-REACT, a federated learning framework designed for heterogeneous and evolving client data. Fed-REACT combines representation learning with evolutionary clustering in a two-stage process: (1) in the first stage, each client learns a local model to extracts feature representations from its data; (2) in the second stage, the server dynamically groups clients into clusters based on these representations and coordinates cluster-wise training of task-specific models for downstream objectives such as classification or regression. We provide a theoretical analysis of the representation learning stage, and empirically demonstrate that Fed-REACT achieves superior accuracy and robustness on real-world datasets.