In July 2011, Intel announced that its server chips, the xenon series, will use new sensors that can improve data center cooling efficiency.

Intel's Justin Rattner has admitted that for certain cloud workloads, these types of high-density solutions are superior to a monolithic server chip like Xeon.

The only thing that makes the technique feasible from a performance per dollar perspective is the fact that Intel charges a fat premium for its higher-end server chips.

AMD has increased production of advanced, dual-processor server chips.

This is a server chip and is not even passable on typical desktop workloads.

Intel's report of higher selling prices on server chips was in stark contrast to news from A.M.D. last week.

But the Atom processor has something going for it that is unexpected - "Atom processors deliver three times the performance per watt versus Intel's server chips."

The server chip, which is being developed under the code name Montecito, was scheduled for release in early 2006, the company said, but will now be shipped in "mid-2006."

The delay amounts to something of a black eye for Intel, as it seeks to maintain its lead in server chips over Advanced Micro Devices.

Still, analysts say server chips account for only a tiny percentage of Intel's chip volume and could not soon offset real slippage in its basic PC business.