According to one aspect of the present disclosure, a method and technique for virtual machine allocation is disclosed. The method includes: responsive to receiving a request to allocate a virtual machine, determining a geophysical location of a host for the virtual machine; determining a geophysical policy for the virtual machine; determining whether the geophysical policy for the virtual machine corresponds to the geophysical location of the host for the virtual machine; and responsive to determining that the geophysical policy for the virtual machine corresponds to the geophysical location of the host, allocating the virtual machine.