The evolving landscape of cloud computing design poses challenges for power consumption and quality of services (QoS). Virtual machine (VM) consolidation is vital in minimizing power consumption and boosting QoS by transferring VMs between hosts. OpenStack Neat is a prominent framework in VM consolidation which uses Modified Best-Fit Decreasing (MBFD) VM placement technique that suffers through energy consumption and QoS related issues. So, we proposed an energy efficient VM consolidation (EEVMC) approach, which uses a novel host selection criterion based on the loss incurred during VM placement to identify the most efficient host. For validation, we conducted simulations using real-time workload traces from Planet-Lab and Materna over ten-days, utilizing the latest CloudSim toolkit for comparison with state-of-the-art techniques. For Planet-Lab’s workload, our approach outperforms with 80.35%, 59.76%, 21.59%, 7.40% in lower energy consumption and 94.51%, 94.85%, 47.17%, 17.78% in fewer system level agreement (SLA) violations when compared to MBFD, PABFD, MFPED, and PEBFD, respectively. Similarly, for Materna, 16.10%, 61.0%, 4.94%, 4.82% in reduced energy consumption and 76.99%, 88.88%, 12.50%, 48.65% in fewer SLA violations against the same benchmarks. Additionally, LA-PED significantly decreases the total number of VM migrations and the SLA time per active host, presenting a substantial improvement in cloud computing efficiency.