That is how also run my fog servers… I started with a virtual machine on vmware esxi and have another physical running on Ubuntu (testing server). Neither one of them are member of our Windows Domain and they work just fine. They do handle everything on their own except for DNS, which I get from Windows domain controllers.
You can run a virtual machine on a windows machine an install fog in it but it will mostl likely take you you some time to get setup correctly, especially the DHCP server part…