Systems and Methods for detection and localization of performance faults in data centers are described. In one embodiment, a method comprises identifying a performance fault in a data center upon detection of the performance fault at any of a plurality of monitors in the data center, wherein the plurality of monitors are placed at monitor nodes, amongst a plurality of nodes, in the data center. Further, the method comprises evaluating a fault vector for the data center upon identification of the performance fault, wherein the fault vector is evaluated based on a fault indicator corresponding to each of the plurality of monitors. Based on the comparison of the fault vector with signatures of each of the plurality of nodes, one or more faulty nodes, amongst the plurality of nodes in the data center, are determined as likely root cause of the performance fault.