A system and method of dynamically provisioning virtualized computational resources in a networked computer architecture includes at least one client device operable to run one or more client applications, at least one server device and a resource controller. Each server device comprises one or more physical processors with local memory. Each server device provides a virtual resource layer through which one or more virtual processing resources can be defined and through which the physical processors of the server device can be assigned to the virtual processing resources. In use, one or more virtual processing resources is assigned to a client application for processing of data processing workloads. The resource controller then monitors the utilization of each virtual processing resource and/or any physical processor assigned to the virtual processing resource. The resource controller can dynamically adjust which, and how many, physical processors are assigned to the virtual processing resource.