A group of new virtual machines have been deployed using thin-provisioned disks due to the limited storage space available in an environment. The storage team has expressed concern about extensive use

Thin provisioning capacity alarms are configured at the datastore level because the datastore is the actual storage resource where virtual machine disk files (VMDKs) are stored and consume physical space. Creating an alarm on the datastore allows for direct monitoring of its utilized space versus provisioned space by thin disks, triggering notifications when a defined threshold is reached.

A data center is a logical container for inventory objects and does not directly manage or monitor individual storage capacity alarms for thin provisioning.

A datastore cluster aggregates multiple datastores for management, but specific thin provisioning capacity alarms are typically set on the individual datastores within that cluster.

While a virtual machine uses thin-provisioned disks, the alarm to monitor the overall storage capacity consumption due to thin provisioning is related to the datastore it consumes, not the VM itself.