elif num_control > 1 and not ds['global_params']['ha_enabled']:
         num_control = 1
     cmd = "openstack overcloud deploy --templates --timeout {} " \
-          "--libvirt-type kvm".format(con.DEPLOY_TIMEOUT)
+          .format(con.DEPLOY_TIMEOUT)
     # build cmd env args
     for option in deploy_options:
         cmd += " -e {}".format(option)
     cmd += ' --control-flavor control --compute-flavor compute'
     if net_data:
         cmd += ' --networks-file network_data.yaml'
+    libvirt_type = 'kvm'
+    if virtual:
+        with open('/sys/module/kvm_intel/parameters/nested') as f:
+            nested_kvm = f.read().strip()
+            if nested_kvm != 'Y':
+                libvirt_type = 'qemu'
+    cmd += ' --libvirt-type {}'.format(libvirt_type)
     logging.info("Deploy command set: {}".format(cmd))
 
     with open(os.path.join(tmp_dir, 'deploy_command'), 'w') as fh:
 
         name: default
         autostart: yes
         state: active
-    - lineinfile:
-        path: /etc/modprobe.d/kvm_intel.conf
-        line: 'options kvm-intel nested=1'
-        create: yes
-      when: ansible_architecture == "x86_64"
-    - modprobe:
-        name: "{{ item }}"
-        state: present
-      with_items:
-        - kvm
-        - kvm_intel
+    - shell: cat /sys/module/kvm_intel/parameters/nested || true
+      register: nested_result
       when: ansible_architecture == "x86_64"
+    - name: reload kvm_intel
+      block:
+        - lineinfile:
+            path: /etc/modprobe.d/kvm_intel.conf
+            line: 'options kvm-intel nested=1'
+            create: yes
+        - modprobe:
+            name: kvm_intel
+            state: absent
+        - modprobe:
+            name: kvm_intel
+            state: present
+      when:
+        - ansible_architecture == "x86_64"
+        - "'Y' not in nested_result.stdout"
     - name: Generate SSH key for root if missing
       shell: test -e ~/.ssh/id_rsa || ssh-keygen -t rsa -N "" -f ~/.ssh/id_rsa
     - name: Check that /u/l/python3.4/site-packages/virtualbmc/vbmc.py exists