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The power demand (kW) and energy consumption (kWh) of data centers were augmented drastically due to the increased communication and computation needs of IT services. Leveraging demand and energy management within data centers is a necessity. Thanks to the automated ICT infrastructure empowered by the IoT technology, such types of management are becoming more feasible than ever. In this paper, we look at management from two different perspectives: (1) minimization of the overall energy consumption and (2) reduction of peak power demand during demand-response periods. Both perspectives have a positive impact on total cost of ownership for data centers. We exhaustively reviewed the potential mechanisms in data centers that provided flexibilities together with flexible contracts such as green service level and supply-demand agreements. We extended state-of-the-art by introducing the methodological building blocks and foundations of management systems for the above mentioned two perspectives. We validated our results by conducting experiments on a lab-grade scale cloud computing data center at the premises of HPE in Milano. The obtained results support the theoretical model, by highlighting the excellent potential of flexible service level agreements in Green IT: 33% of overall energy savings and 50% of power demand reduction during demand-response periods in the case of data center federation. [ABSTRACT FROM AUTHOR]