Virtualization technology benefits data centers by maximizing resource utilization, flexibility, and cost efficiency. By creating virtual machines (VMs) that allow multiple operating systems to run on a single physical server, organizations can optimize hardware usage and reduce the need for additional physical devices. This leads to significant savings in energy and space. Furthermore, virtualization enhances disaster recovery capabilities, as VMs can be easily backed up and migrated across servers. Overall, it enables more agile responses to changing business needs and contributes to more sustainable IT practices.