Amazon designs faster ARM-based chips for its cloud servers

The company is getting serious about the development of server hardware.

Amazon's cloud hosting business, Amazon Web Services, will soon be getting new server hardware -- an updated processor specifically designed for data centers, as reported by Reuters.

Last year, Amazon announced the launch of its ARM-based processor called Graviton which was optimized for performance and cost. According to a source who spoke to Reuters, the new processors are at least 20 percent faster than this first-generation ARM chip.

The technology for the chips comes from ARM Holdings, a British company which is aiming to take on the market dominance of Intel and AMD. At one point, Intel had a near-monopoly with 99 percent market share of server chips, but in recent years ARM has established itself as a serious contender in the server space.

The new Amazon chip hasn't been officially announced yet, but it is expected to use ARM's Neoverse N1 technology and to have at least 32 cores, twice as many as the previous ARM chip.