Virtualization enhances resource utilization in data centers by allowing multiple virtual instances to run on a single physical server. This technology enables the efficient allocation of computing resources, such as CPU, memory, and storage, reducing hardware costs and improving energy efficiency. With virtualization, organizations can quickly deploy and manage applications, leading to faster scaling and improved disaster recovery capabilities. Additionally, this approach promotes better load balancing and minimizes downtime, which contributes to overall operational efficiency. Virtualization is a foundational technology for cloud computing, enabling flexible and dynamic IT environments.