A method of adjusting power budgets of multiple servers within a data center comprises various actions. Such actions include, for example, organizing the multiple servers into hierarchical groups, dividing a total power budget among the hierarchical groups, and assigning power consumption levels to individual members of a particular hierarchical group such that the sum total of the assigned power consumption levels does not exceed the total power budget for the particular hierarchical group. The act of dividing is dynamic with respect to time.