Provably Communication-Efficient and Privacy-Preserving Federated Graph Neural Networks

Graph neural networks (GNNs) achieve strong performance on relational data, but real-world graphs are often distributed across organizations that cannot share raw data due to privacy and policy constraints. Existing federated GNN methods either ignore cross-client links, leading to degraded accuracy, or require frequent embedding exchanges, incurring substantial communication and privacy costs. We propose CE-FedGNN, a communication-efficient and privacy-preserving federated GNN framework for learning over such coupled graphs. Our approach avoids sharing raw data or per-round embeddings by infrequently exchanging aggregated node representations. To handle cross-client dependency and staleness, we introduce a moving-average estimator that continuously tracks node representations and enables their stable reuse across rounds. To provide formal privacy guarantees for the released representations, we adopt the metric differential privacy (metric-DP) framework, which measures privacy with respect to distances in the learned embedding space rather than worst-case input perturbations. This yields meaningful guarantees at noise levels where standard differential privacy becomes overly conservative. We establish convergence to a stationary point at a rate of O(1/√T) with O(T3/4) communication complexity. In addition, we derive (varepsilon,δ)-metric-DP guarantees via R'enyi differential privacy composition under a public-cohort threat model. Experiments on synthetic interbank anti-money laundering benchmarks and citation networks demonstrate that CE-FedGNN achieves strong performance while significantly reducing communication and maintaining robustness under privacy-preserving noise.