Embodiments of the invention relate to a system and method for dynamically scheduling resources using policies to self-optimize resource workloads in a data center. The object of the invention is to allocate resources in the data center dynamically corresponding to a set of policies that are configured by an administrator. Operational parametrics that correlate to the cost of ownership of the data center are monitored and compared to the set of policies configured by the administrator. When the operational parametrics approach or exceed levels that correspond to the set of policies, workloads in the data center are adjusted with the goal of minimizing the cost of ownership of the data center. Such parametrics include yet are not limited to those that relate to resiliency, power balancing, power consumption, power management, error rate, maintenance, and performance.