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In this paper, our goal is to achieve an optimal tradeoff between energy efficiency and service performance over a set of distributed IDCs with dynamic demand. In particular, we consider the outage probability as the QoS metric, where outage is defined as service demand exceeding the capacity of an IDC. Our goal is thus to minimize total energy cost over all IDCs, subject to the outage probability constraint. We achieve the goal by dynamically adjusting server capacity and performing load shifting in different time scales. We propose three different load-shifting and joint capacity allocation schemes with different complexity and performance. Our schemes leverage both stochastic multiplexing gain and electricity-price diversity.