Congestion management for data traffic in a virtual domain identifies a congestion source and sends a message to the source to adjust data traffic rates. The source may be a virtual machine hosted by a physical server with one or more virtual servers incorporated. A congestion manager may identify the source and send the message to the source without affecting other data sources hosted by the physical server or the virtual servers. In some embodiments, information about the congestion source may be encapsulated in a packet payload readable only by the congestion source so only the congestion source receives the instruction to adjust the transmission rate.