As energy has become one of the key operating costs in running a data center and power waste commonly exists, it is essential to reduce energy inefficiency inside data centers. In this paper, we develop an innovative framework, called PowerTracer, for diagnosing energy inefficiency and saving power. Inside the framework, we first present a resource tracing method based on request tracing in multi-tier services of black boxes. Then, we propose a generalized methodology of applying a request tracing approach for energy inefficiency diagnosis and power saving in multi-tier service systems. With insights into service performance and resource consumption of individual requests, we develop (1) a bottleneck diagnosis tool that pinpoints the root causes of energy inefficiency, and (2) a power saving method that enables dynamic voltage and frequency scaling (DVFS) with online request tracing. We implement a prototype of PowerTracer, and conduct extensive experiments to validate its effectiveness. Our tool analyzes several state-of-thepractice and state-of-the-art DVFS control policies and uncovers existing energy inefficiencies. Meanwhile, the experimental results demonstrate that PowerTracer outperforms its peers in power saving.