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Combined cloud and electricity portfolio optimization for cloud service providers

Author

Listed:
  • Guo, Caishan
  • Luo, Fengji
  • Cai, Zexiang
  • Sun, Yuyan
  • Tang, Wenhu

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.

Suggested Citation

  • Guo, Caishan & Luo, Fengji & Cai, Zexiang & Sun, Yuyan & Tang, Wenhu, 2025. "Combined cloud and electricity portfolio optimization for cloud service providers," Applied Energy, Elsevier, vol. 377(PA).
    • Handle: RePEc:eee:appene:v:377:y:2025:i:pa:s0306261924013084
    DOI: 10.1016/j.apenergy.2024.123925
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    References listed on IDEAS

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    1. Zeng, Bo & Zhou, Yinyu & Xu, Xinzhu & Cai, Danting, 2024. "Bi-level planning approach for incorporating the demand-side flexibility of cloud data centers under electricity-carbon markets," Applied Energy, Elsevier, vol. 357(C).
    2. Guo, Caishan & Luo, Fengji & Cai, Zexiang & Dong, Zhao Yang & Zhang, Rui, 2021. "Integrated planning of internet data centers and battery energy storage systems in smart grids," Applied Energy, Elsevier, vol. 281(C).
    3. Fu, Yangyang & Han, Xu & Baker, Kyri & Zuo, Wangda, 2020. "Assessments of data centers for provision of frequency regulation," Applied Energy, Elsevier, vol. 277(C).
    4. Guo, Caishan & Luo, Fengji & Cai, Zexiang & Dong, Zhao Yang, 2021. "Integrated energy systems of data centers and smart grids: State-of-the-art and future opportunities," Applied Energy, Elsevier, vol. 301(C).
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