I graduated from a not so incredible university and we had multiple such rooms. Teaching assistants and some tutors helped supervising the exams and it wasn't easy to cheat without getting caught.
Contestant computers boot a Linux image that contains all the interpreters/compilers and documentation for the supported languages, some editors/IDEs(vim, Jetbrains, Eclipse, etc) and a web browser.
Network access is limited to the judging system only.
My experience in Europe is that most universities can support this.
Jfc, this is a solved problem at the community college near me. All of the computers in the testing room are thin clients that effectively remote into a vm, and you get checked with a metal detector before going into the room with the computers.
If you can escape the vm on the fly and manage to use an llm to cheat, you deserve that A.
How practical is this?
1. Is your institution able to provide this support?
2. Do you believe you are able to supervise the room well enough that students will be caught if they cheat? (Eg, bring a phone and look up answers.)