Combined cloud and electricity portfolio optimization for cloud service providers

Caishan Guo, Fengji Luo, Zexiang Cai, Yuyan Sun and Wenhu Tang

Applied Energy, 2025, vol. 377, issue PA, No S0306261924013084

Abstract: Backboned by energy-intensive Internet data centers (IDCs), cloud systems have been playing important roles in both modern information and energy systems. This paper proposes a comprehensive portfolio optimization framework to provide operational decision-making support to a cloud service provider managing networked IDCs in trading cloud and energy resources in a cloud market, multiple regional wholesale electricity markets, and multiple local electricity markets. The portfolio management logics are represented by 3 interrelated optimization models; a computational linearization approach is developed, which transforms the 3 models into a single mathematical programming problem with equilibrium constraints based on Karush–Kuhn–Tucker conditions. Extensive simulations and comparison studies are conducted to demonstrate that the proposed framework can effectively optimize the operation of networked IDCs in the combined market environment.

Keywords: Internet data center; Portfolio optimization; Cloud pricing; Electricity market; Energy management (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1016/j.apenergy.2024.123925

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