In one embodiment, a technique for processing data packets in a data network comprising a plurality of virtual local area networks (VLANs) is disclosed. A data network is divided into a core network and a plurality of domain networks, each domain network coupled to one or more customer networks. A plurality of VLANs are apportioned between the domain networks and the core network. The VLANs that are allocated to the domain networks are local to each domain network. However, the VLANs allocated to the core network are global to the domain networks and core network. When a data packet is acquired at a domain ingress edge node in a particular domain network, the node generates a domain network packet from information contained in the data packet. The node then tags the domain network packet with a domain VLAN (DVLAN) tag associated with a VLAN allocated to the domain network.