In one embodiment, a system for managing a virtualization environment includes host machines implementing a virtualization environment, a plurality of clusters of the host machines, a virtualized file server (VFS) comprising a plurality of file server virtual machines (FSVMs), and a VFS cluster manager (CM) configured to distribute storage items among the clusters and receive cluster storage statistics for one or more shares of the VFS. The CM is further configured to, in response to a request from a first FSVM to identify a storage location for a storage item, identify a cluster at which the storage item is to be located based on the cluster storage statistics, identify a second FSVM at which the storage item is to be located based on compute usage statistics of one or more FSVMs in the identified cluster, and send an address of the second FSVM to the first FSVM.