Initial plans of building a custom server geared for the role have been postponed, OLPC however offers hardware recommendations for the system, and plans to support the XO laptops running as a server for very small schools.
OLPC XS can provide children's XO laptops and their Sugar Learning Platform with network connectivity for backups, anti-theft leases, web browsing, system, content updates, asynchronous collaboration tools such as Moodle, etc.
The (currently on hold) plans call for an energy-efficient design that does not require moving parts for basic functionality.
Hard disks will be provided for storing a library of local content and for making backups of the children's data.
The XS is intended to ship with one hard disk installed, and a second to serve as either a spare or for increased capacity.