Cloud computing has drastically reduced the price of computing resources through the use of virtualized resources that are shared among users. However, the established large cloud data centers have a large carbon footprint owing to their excessive power consumption. Inefficiency in resource utilization and power consumption results in the low fiscal gain of service providers. Therefore, data centers should adopt an effective resource‐management approach. In this paper, we present a novel load‐balancing framework with the objective of minimizing the operational cost of data centers through improved resource utilization. The framework utilizes a modified genetic algorithm for realizing the optimal allocation of virtual machines (VMs) over physical machines. The experimental results demonstrate that the proposed framework improves the resource utilization by up to 45.21%, 84.49%, 119.93%, and 113.96% over a recent and three other standard heuristics‐based VM placement approaches.