Encryption-Compatible Clustered Federated Learning via Distributed Expectation-Maximization over Metadata
This work addresses the trilemma in clustered federated learning—where privacy preservation, communication efficiency, and computational scalability are difficult to achieve simultaneously—by proposing an encryption-compatible, highly efficient solution. The approach reformulates metadata-driven clustering as a distributed expectation-maximization (EM) process that relies solely on additive operations at the server, thereby enabling seamless integration with practical privacy-enhancing technologies such as additive homomorphic encryption. For the first time, this method breaks the CFL trilemma without compromising efficiency, significantly improving client model performance across diverse heterogeneous datasets while simultaneously ensuring strong privacy guarantees, low computational overhead, and high communication efficiency.