1. A method for detection and localization of performance faults in data centers, the method comprising: identifying monitor nodes amongst a plurality of nodes in a data center for placement of a plurality of monitors at the monitor nodes, wherein identifying the monitor nodes is based on one of a hitting set algorithm, an information entropy algorithm, and an information entropy hitting set algorithm; identifying a performance fault in the data center upon detection of the performance fault at any of the plurality of monitors in the data center; 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; and determining one or more faulty nodes amongst the plurality of nodes in the data center based on a comparison of the fault vector with a signature of each of the plurality of nodes, wherein the one or more faulty nodes are identified as likely root cause of the performance fault.