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Hierarchial Demand Response for Colocation Data Centers | IEEE Conference Publication | IEEE Xplore

Hierarchial Demand Response for Colocation Data Centers


Abstract:

Demand response is considered as a valuable functionality of the power grid and its potential impacts continue expanding with grid modernization. Colocation data centers ...Show More

Abstract:

Demand response is considered as a valuable functionality of the power grid and its potential impacts continue expanding with grid modernization. Colocation data centers (simply called colocation) are recognized as a notably promising resource for demand response due to their high power demand and remarkable potential in demand management. A major challenge of colocation demand response is the split incentive, that is, colocation operators desire demand response for financial compensation while tenants may not embrace demand response due to lack of incentives. To address this challenge, we study a hierarchical demand response scheme, where tenants within a colocation respond to the colocation operator while the operator interacts with the electric power company. We propose that twolevel marketing is suitable to this hierarchical scheme, and design a new market mechanism that results in a win-win situation for the operator and tenants. Specially, tenants who chooses to reduce power demand obtain financial rewards from the operator, while the operator receives financial compensation from the electric power company due to its tenants' demand reduction. An appealing feature of the mechanism is that it provably converges to a unique equilibrium solution. At the equilibrium, neither the operator or tenants can improve their individual economic performance by changing their own strategies. We evaluate the designed mechanism via detailed simulations and the results show the efficacy and validate the theoretical analysis for the mechanism.
Date of Conference: 29-31 May 2017
Date Added to IEEE Xplore: 15 June 2017
ISBN Information:
Conference Location: Hong Kong, China

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