Abstract: A method is disclosed for providing for a high-level local manager in each data center of a group of data centers. The high-level local manager is configured to allocate a new virtual machine or re-allocate an already running virtual machine. The high-level local managers exchange information with each other and run the same programs or processes, so that each local manager knows where the new virtual machine is to be assigned. Once determined which data center will execute the virtual machine, the method provides for a low-level local manager to assign the virtual machine to one of the servers of the data center according to a local algorithm.