The emerging high-speed storage technologies and the ever-growing need for data storage are placing increasing pressure on data center networks. In this paper, we develop novel mechanisms for dynamically deciding when to move storage chunks or alter the number of active copies to alleviate congestion during high traffic episodes and to enable traffic consolidation (and hence network energy savings) during low traffic periods. Both actions are essential due to increasing burstiness of data center traffic. Using extensive simulations with modified NS3 network simulator we provide deep insights into the migration vs. replication tradeoff. We also show that under traffic bursts, a careful replication can provide up to 47% improvement in latency with read-dominated traffic, and strategic data migration to a low utilized node can provide up to 22% improvement in delays with write dominated traffic.