This document discusses strategies for improving data center efficiency through server virtualization. It notes that servers currently account for 40% of data center electricity use, and virtualization can help consolidate servers to reduce power consumption. The key is to first address efficiency at the server level before considering other infrastructure upgrades. The document outlines various approaches to virtualizing servers, such as spreading workload across physical hosts, using supplemental cooling, or designating high-density and low-density server areas. No single strategy is best and many factors must be considered to maximize efficiency gains from virtualization.