Combined cloud and electricity portfolio optimization for cloud service providers

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.