Cloud computing service providers are unable to provide the better service to the users from all over the world due to the geographical location as well as resource limitation. The main goal behind federated cloud is to provide flexible, scalable and cost efficient Quality of Service (QoS). Fast emerging cloud computing market has created different types of clouds like federated cloud. To support dynamic load, the system should select the best location for serving the request to achieve best performance. This problem can be divided into two sub problems; first one is to select the data center and second is to select the physical machine. Selection of data center plays an important role to improve the performance as well as to reduce the cost. This paper presented the algorithm for selection of a data center in a federated cloud computing environment. We have validated our approach using Cloud Analysis toolkit. The results describe that the data center selection algorithm offers significant performance gains with respect to cost, response time and throughput.