Dynamic data center load response to variability in private and public electricity costs

This paper assesses the potential cost-saving incentives for content distribution networks to shift traffic load among geographically distributed data centers in response to hourly variation in electricity prices. Such incentives are likely aligned with benefits to utilities and grid operators, which might take the form of peak-shaving or ancillary services. However, private cost savings are not strictly aligned with public benefits related to the avoidance of health and environmental damages from power plant emissions, so we compare private cost minimization with a strategy that minimizes these externalities. We find that feasible strategies exist to simultaneously realize public and private benefits and that load shifting can result in substantial cost savings and avoided damages in some circumstances. Concerns over increased latency and bandwidth costs can be mitigated with modifications to the model. However, the level of realized savings is dependent upon the specifics of a particular network operator and electricity rate schedule.