Q. Are the Azure government regions simply separate racks in datacenters with consumer services or separate datacenters?
A. The Azure government regions are completely separate data centers from those used for consumer services. The different services and the different regions are called out in https://azure.microsoft.com/en-us/regions/#services. For details on the government deployment see http://download.microsoft.com/download/F/3/1/F318E606-C0EA-4794-AFE1-456148F87AEA/Azure Government Overview.docx.