Virtual Machine Placement (VMP) plays an important role in ensuring efficient resource provisioning of physical machines (PMs) and energy efficiency in Infrastructure as a Service (IaaS) data centers. Efficient server consolidation assisted by virtual machine (VM) migration can promote the utilization level of the servers and switch the idle PMs to sleep mode to save energy. The trade-off between energy and performance is difficult, because consolidation may cause performance degradation, even service level agreement (SLA) violations. A novel residual available capacity (RAC) resource model is proposed to resolve the VM selection and allocation problem from the cloud service provider (CSP) perspective. Furthermore, a novel heuristic VM selection policy for server consolidation, named Minimized Square Root available Resource (MISR) is proposed. Meanwhile, an efficient VM allocation policy, named Balanced Selection (BS) based on RAC is proposed. The effectiveness validation of the BS-MISR combination is conducted on CloudSim with real workloads from the CoMon project. Evaluation results of experiments show that the proposed combinationBS-MISR can significantly reduce the energy consumption, with an average of 36.35% compared to the Local Regression and Minimum Migration Time (LR-MMT) combination policy. Moreover, the BS-MISR ensures a reasonable level of SLAs compared to the benchmarks.