A method, system and computer program product for allocating compute nodes among cloud groups. Policies are created for cloud groups for specifying conditions when a compute node will need to be borrowed by a cloud group as well as when the borrowed compute node is to be returned. Furthermore, priorities are assigned to the conditions in the policies for borrowing a compute node as well as to the cloud groups concerning borrowing compute nodes. A compute node is allocated temporarily from a first cloud group to a second cloud group based on the priority assigned to the second cloud group and the priority assigned to the monitored condition invoking the borrowing of the compute node as well as based on the monitored condition satisfying a condition in the policy for the second cloud group as to when the compute node will need to be borrowed by the second cloud group.