The technology used to create and manage virtual servers in cloud computing is typically based on hypervisor technology. Hypervisors allow multiple virtual machines (VMs) to run on a single physical server by abstracting hardware resources. They provide the necessary resources for each VM, including CPU, memory, and storage, while ensuring isolation between them. This virtualization technology enables flexible resource allocation, efficient use of hardware, and easier management of IT resources, contributing to the scalability and flexibility of cloud environments.