One embodiment provides a power management method for servers in a data center. A group of servers is selected, and the total power allocated to a group of servers is limited to within a group power budget. A separate server power allocation is individually requested for each of a plurality of the servers. Within the constraints of the group power budget, the requested server power allocations are selectively granted for a specified magnitude and duration. The granted server power allocations are also selectively renewed, either automatically or upon request of the servers. Each server that has not received a renewed server power allocation from a group power management entity upon the expiration of the specified duration automatically reduces its own power consumption, such as by the server powering itself off.