An approach for allocating information technology (IT) resources in a networked computing environment (e.g., a cloud computing environment) based on physical location mapping is provided. Specifically, an IT allocation system assigns resources to a specific cloud pool based on the physical location of the resources. By mapping a given physical location (e.g., a defined region of a grid defining a datacenter) to a specific pool, and by enabling the tracking of a resource to a location within the datacenter, the approach can automatically assign a resource to a cloud pool based upon its physical location. Thus, the IT allocation system provides additional pool elasticity while easing the management burden.