As the scale of a cloud data center becomes larger and larger, the energy consumption of the data center also grows rapidly. Dynamic consolidation of Virtual Machines (VMs) presents a significant opportunity to save energy by turning off unused Physical Machines (PMs) in data centers. In this paper, we present a distributed controller to perform dynamic VM consolidation to improve the resource utilizations of PMs and to reduce their energy consumption. Moreover, we use the ant colony system to find a near-optimal VM placement solution based on the specified objective function. Experimental results on the real workload traces from more than a thousand PlanetLab VMs show that the proposed approach reduces energy consumption and maintains required performance levels in a large-scale data center.