Labelling data is expensive and time consuming especially for domains such as medical imaging that contain volumetric imaging data and require expert knowledge. Exploiting a larger pool of labeled data available across multiple centers, such as in federated learning, has also seen limited success since current deep learning approaches do not generalize well to images acquired with scanners from different manufacturers. We aim to address these problems in a common, learning-based image simulation framework which we refer to as Federated Simulation. We introduce a physics-driven generative approach that consists of two learnable neural modules: 1) a module that synthesizes 3D cardiac shapes along with their materials, and 2) a CT simulator that renders these into realistic 3D CT Volumes, with annotations. Since the model of geometry and material is disentangled from the imaging sensor, it can effectively be trained across multiple medical centers. We show that our data synthesis framework improves the downstream segmentation performance on several datasets.