The SM10000-64 has 512 Atom processing cores running at 1.66GHz, which combine to deliver 850GHz of processing power, the company said. Each core is capable of running two threads simultaneously, which helps boost application performance.

Intel's low-power Atom processors are typically used in netbooks. But these chips are considered more power-efficient than traditional server chips for certain tasks such as Web transactions, which contain small amounts of data and can be quickly processed.

The server is targeted at data centers that handle a large volume of Internet transactions, such as e-mail, search and social networking, said Andrew Feldman, CEO of SeaMicro. The server is also targeted at managed hosting providers and cloud-based service providers.

Depending on the application, a collection of Atom cores could provide better performance-per-watt than Intel's Xeon and Advanced Micro Devices' Opteron server chips, which consume more power and are geared toward intense engineering, math or database applications, Feldman said.