Both power and performance are important concerns for enterprise data centers. While various management strategies have been developed to effectively reduce server power consumption by transitioning hardware components to lower power states, they cannot be directly applied to today's data centers that rely on virtualization technologies. Virtual machines running on the same physical server are correlated because the state transition of any hardware component will affect the application performance of all the virtual machines. As a result, reducing power solely based on the performance level of one virtual machine may cause another to violate its performance specification. This paper proposes PARTIC, a two-layer control architecture designed based on well-established control theory. The primary control loop adopts a multi-input multi-output control approach to maintain load balancing among all virtual machines so that they can have approximately the same performance level relative to their allowed peak values. The secondary performance control loop then manipulates CPU frequency for power efficiency based on the uniform performance level achieved by the primary loop. Empirical results demonstrate that PARTIC can effectively reduce server power consumption while achieving required application-level performance for virtualized enterprise servers.