What is a vTPM? A virtual Trusted Platform Module (vTPM) as implemented in VMware vSphere is a virtual version of a physical TPM 2.0 chip, implemented using VM Encryption. It offers the same functionality as a physical TPM but is used within virtual machines (VMs).
Deployment of vTPM modules, require a Key Provider on the vCenter Server.
For more information on vTPM modules.
For more information on vTPM modules.
In order to deploy vTPM modules (and VM encryption, vSAN Encryption) on VMware vSphere ESXi, you need to configure a Key Provider on your vCenter Server.
Traditionally, this would be accomplished with a Standard Key Provider utilizing a Key Management Server (KMS), however this required a 3rd party KMS server and is what I would consider a complex deployment.
VMware has made this easy as of vSphere 7 Update 2 (7U2), with the Native Key Provider (NKP) on the vCenter Server.
The Native Key Provider, allows you to easily deploy technologies such as vTPM modules, VM encryption, vSAN encryption, and the best part is, it’s all built in to vCenter Server.
Enabling VMware Native Key Provider (NKP)
To enable NKP across your vSphere infrastructure:
->Log on to your vCenter Server
->Select your vCenter Server from the Inventory List
->Select “Key Providers”
->Click on “Add”, and select “Add Native Key Provider”
->Give the new NKP a friendly name
->De-select “Use key provider only with TPM protected ESXi hosts” to allow your ESXi hosts without a TPM to be able to use the native key provider.
In order to activate your new native key provider, you need to click on “Backup” to make sure you have it backed up. Keep this backup in a safe place. After the backup is complete, you NKP will be active and usable by your ESXi hosts.
https://www.starwindsoftware.com/blog/windows-11-tpm-and-encryption-in-vmware-vsphere
