This research endeavor is about data center virtualization which is a critical issue in recent periods. It is critical because virtualization an enabler to other technologies including cloud computing. The ultimate goal of a data center is handling the organization data appropriately. The research area is Amhara regional health bureau data center. rnThe regional health bureau runs physical data center in which a one application for one server architecture is exercised which have numerous barriers. Certain researches have been conducted on virtualization especially client virtualization, application virtualization and network virtualization. But, little attention was given for server virtualization. rnThe general objective of the study is developing a data center virtualization framework for the regional health bureau. rnDesign science research methodology was used which is intended to design the proposed framework. Problem identification and motivation, objective of the solution, design and development, demonstration, evaluation and finally communications of the design science research process steps are used. The general approach of the research is a design science approach in which Amhara regional health bureau was selected for a case and data was collected from information technology staffs of the regional health bureau using purposive sampling. Semi-structured interview, observation and document analysis were the data collection instruments used to gather appropriate data. After the qualitative data was gathered, it was finally analyzed using thematic coding analysis technique in which the result of interview was grouped in to main categories. From the analysis result it was clear that the physical data center is 1) not cost effective, 2) not scalable, 3) difficult to manage, 4) difficult to recover, 5) suffers for security issues etc. rnExperiment was used to check the resource utilization of both the physical machines and virtual machines and compared. By using both the experiment and the analysis result, virtualization framework was developed. rnIn this study expert validation methods through focus group discussion were used to evaluate the developed framework. Hence the research finding is believed to be valid which assures the usability and applicability of the output of the study.