A server allocation controller provides an improved distributed data processing system for facilitating dynamic allocation of computing resources. The server allocation controller supports transaction and parallel services across multiple data centers enabling dynamic allocation of computing resources based on the current workload and service level agreements. The server allocation controller provides a method for dynamic re-partitioning of the workload to handle workload surges. Computing resources are dynamically assigned among transaction and parallel application classes, based on the current and predicted workload. Based on a service level agreement, the server allocation controller monitors and predicts the load on the system. If the current or predicted load cannot be handled with the current system configuration the server allocation controller determines additional resources needed to handle the current or predicted workload. The server cluster is reconfigured to meet the service level agreement.