This article explains how to enable Thin Provisioning on XenServer.
By default, a new SR in XenServer will be formatted in LVM, which does not support thin provisioning. So if you add an SR and you don’t explicitly specify ext3, your disk will default to thick provisioning.
1. You can enable thin provisioning at installation time:#xe sr-create host-uuid=$host_uuid content-
type
=user name-label=
"SR name"
shared=
false
device-config:device=
/dev/sdX
type
=ext